DHL Supply Chain Launched India Fulfilment Network

DHL Supply Chain, shortly known as DHL - the global market leader in contract logistics, has launched its new supply chain network, “the India Fulfillment Network (IFN), in Bangalore. This fully integrated and end-to-end fulfilment solution will use the ‘Pay Per Use Model’ to assist larger businesses to de-risk through additional ready-to-use hubs.

As the first-of-its-kind service, DHL Fulfillment Network aims to benefit the sprawling number of small and medium retail businesses that have experienced the transition from brick-to-mortar to online marketplaces, especially during the ongoing process pandemic situation fuelled by the movement restrictions.

For this, the company is said to invest more than INR 25 crores to scale up the network across major metros and state capitals over the next 12 months.

Tapping the Unprecedented Opportunity in Logistics

The company has tapped an unprecedented opportunity in the Indian eCommerce market, which is expected to grow at a CAGR of approximately 27% by 2024 as the number of sellers keeps soaring in various categories to an omnichannel model.

Above all, eCommerce popularity during the COVID-19 pandemic will further boost online retail transactions across the country, especially with government-imposed social distancing protocols and a resultant decline in customers at brick and mortar shops. DHL has expanded its warehousing to meet the ecommerce boom followed by the pandemic. Additionally, the expansion of eCommerce and 3PL sectors is increasing warehousing demands to 160% than its earlier periods.

The Future Ahead

The India Fulfillment Network (IFN) is considered the perfect launchpad for easing the B2C fulfilment process. The network seamlessly facilitates smooth operations in an open online marketplace scenario by offering a 360-degree supply chain solution for enterprises for all kinds of businesses.

In addition, the IFN allows transportation linkages to customers, paving for last-mile delivery services to further make them work independently online. Also, the strategic location of the network’s sites in proximity with the major urban centres offers SMEs a multi-user network solution with transparent access to its already established services that would support them enjoy an easy and friendly flow throughout the entire supply chain. It acts as an end-to-end tracking and monitoring mechanism that enables merchants to directly sell their products anywhere in the country without investing huge money into developing their infrastructure.

Empowered by the “Pay-per-use model”, the IFN enables large retailers and big brands the option to de-risk their supply chains by providing access to e-fulfilment hubs in different parts of the country, that would ensure that their sales and distribution channels get less impacted in the event of lockdowns and others.

Speaking on the development, Vikas Anand, Managing Director, DHL Supply Chain, India, said, “The IFN aims to empower Indian businesses’ e-commerce business models by offering accessed omnichannel distribution capabilities across prime markets. The mechanism allows SMEs to take advantage of DHL’s flexible and tailored scale-up framework.” 

“The IFN network supports customers across the entire supply chain from inbound handling and storage, pick and pack, last-mile delivery, as well as handling returns,” added Anand.