04/19/2016, 11:30 AM CEST

DHL redefines logistics in Singapore with opening of the EUR 90 million Advanced Regional Center

The 90,000 sqm facility translates into 40% growth in DHL Supply Chain's warehousing footprint in Singapore. 

As a multi-customer facility, the Advanced Regional Center offers bespoke solutions to cater to specific industry needs.

  • New facility boasts EUR 10.6 million automation system featuring advanced robotics
  • 90,000 sqm facility translates into 40% growth in DHL Supply Chain's warehousing footprint in Singapore

Bonn, Singapore - DHL Supply Chain today launched its Advanced Regional Center (ARC) in Singapore. Built at an investment of more than EUR 90 millioni, the new 90,000 sqm warehouse includes a EUR 10.6 million multi-customer automation system featuring advanced robotics.

The pioneering system allows customers to enjoy the benefits of automation solution without the need for significant capital investment. The technological enhancement uses 130 robotic shuttles to pick and store products from 72,000 locations spread across 26 levels, improving picking efficiency picking by 20% and utilizing 40% less space than conventional warehousing operations.

This is the first of its kind deployed by DHL globally and creates a model for the future of warehousing in land-scarce countries and dense cities where land availability is limited and expensive.

"As an organization our spirit thrives on a hunger for new knowledge and innovations that we can bring to customers to meet the challenges of Industry 4.0, the fourth industrial revolution. We see the Asian region as a swift adopter of technologies for enhanced productivity and efficiency. By 2020, Asia will constitute 30% of our total revenue. Facilities like the Advanced Regional Center offer a ready model of innovations that reduce complexity, improve accuracy and maximize opportunities for productivity gains," said Dr. Frank Appel , Chief Executive Officer, Deutsche Post DHL Group.

Singapore: A base for Regional Logistics Hubs

As a multi-customer facility, the Advanced Regional Center also offers bespoke solutions to cater to specific industry needs. For example, the facility boasts clean rooms for Life Sciences & Healthcare businesses, specialized infrastructure for aerospace operations and customized storage solutions for managing service parts for technology customers.

Purpose-built to industry-leading standards, the ARC facility has been awarded 'gold status' for its energy and environmental design. The company has also implemented robust security measures that are in accordance with global TAPA standards.

"We've seen swift take up from multinational companies using the Advanced Regional Center as their regional or global logistics hub. It also includes a multi-customer automated solution - solutions like this have previously shown within DHL to provide a space optimization of up to 40% and substantial productivity improvements, and are especially useful for customers with high value, fast moving goods which need to be processed in high volumes on a daily basis, ensuring speed, accuracy and security. By providing this solution in a multi-customer environment, it uniquely opens these types of solutions and advantages to a wider customer base. The system is modular in design and can be expanded depending on customer needs," said Oscar de Bok, Chief Executive Officer, Asia Pacific, DHL Supply Chain.

Co-located within the ARC is the DHL Asia Pacific Innovation Center (APIC), DHL's first innovation center outside of Germany and a joint development with the Singapore Economic Development Board. Launched in 2015, APIC is the first dedicated center for innovative logistics services in the Asia Pacific region and showcases futuristic technologies.

i The EUR 90 million investment is a combined investment of approximately EUR 20 million from DHL and over EUR 70 million from Cache Logistics Trust, the appointed logistics real estate solutions provider.