DHL Supply Chain, part of Deutsche Post DHL Group, has been chosen by boohoo group plc to manage its first-ever U.S. distribution centre. DHL Supply Chain will provide boohoo, which generates annual sales of over $2.4 billion, with best-in-class warehousing solutions to enable the company’s expected growth in the U.S. market.
As boohoo’s popularity in the U.S. continues to grow, DHL Supply Chain will lead the operation of a new 1.1 million-square-foot distribution centre in Elizabethtown, Pennsylvania, southeast of Harrisburg. The location, expected to open in early 2023, will allow the company to offer next-day service to the New York City metro region, a key customer area for the fashion brand.
“Although boohoo has been servicing the U.S. through its existing network in the U.K. since 2006, the company’s growing order volumes and customer demand on this side of the pond in recent years made a U.S.-based distribution center for direct-to-consumer fulfillment a necessity,” said Kraig Foreman, President, eCommerce, DHL Supply Chain. “Their new facility will reduce transportation costs, improve service, and drive greater agility and speed, getting the latest trends into customers’ hands faster. We’re proud to partner with boohoo as they invest in the U.S. market and prepare for future growth.”
DHL Supply Chain will hire 1,000 associates in its first year at the state-of-the-art warehouse, with nearly 2,500 expected over the next three years. The site will feature several amenities, including a kitchen/canteen with fresh food prepared daily, as well as an on-site gym and activity area. The site also will include a recruiting and training centre to allow for faster hiring and training of new associates.
In line with its proven ability to apply emerging technologies to drive efficiency and productivity improvements for customers, through its accelerated digitalization programme, DHL plans to introduce highly automated solutions, such as an Automated Storage and Retrieval System (ASRS) and a high-speed pouch sorter at the boohoo site in the next three years. These systems work together to put away and replenish inventory in addition to providing picking and pack sortation. This will be one of the first sites within DHL Supply Chain’s operations to feature the technology and is one of the most cutting-edge warehousing solutions on the market.
“We have a loyal and growing customer base in the US and want to provide them with a faster and smoother service than we can currently offer from the UK. Investing in our distribution network in the U.S. illustrates the confidence we have to grow our business in this important market. We chose DHL Supply Chain as our logistics partner because of their industry-leading expertise in managing highly complex e-commerce operations and their proven track record with successful startups in the space,” said David James, Supply Chain Director. “Our inventory management is an extremely important element of our overall business and our commitment to a superior customer experience. We trust DHL Supply Chain to handle our operations at our new U.S. site, leveraging their commitment to advanced digitalization to ensure we meet our customers’ expectations.”