May 17, 2020

DHL investing $137 million in US eCommerce

DHL eCommerce
DHL eCommerce US
DHL eCommerce investment
DHL fulfilment centres US
Jennifer Johnson
1 min
DHL eCommerce is hoping to increase its eCommerce footprint in the US.
Deutsche Post DHL Group has announced a US $137 million investment plan for its US domestic and cross-border eCommerce market.

The worlds top logistics...

Deutsche Post DHL Group has announced a US $137 million investment plan for its US domestic and cross-border eCommerce market.

The world’s top logistics firm will build eight fulfillment centres and upgrade two existing warehouses in Los Angeles and Columbus, Ohio in order to enhance its North American eCommerce services.

DHL’s objective is to exploit the rapidly expanding global B2C eCommerce market for cross-border shipments. The segment is expected to grow from $400 billion today to a worldwide total volume of $1 trillion by 2020.

According to Business Insider, DHL has previously tried to compete with UPS and FedEx in the US delivery market, but following heavy losses it opted to focus on international shipments.

DHL eCommerce CEO Charles Brewer has said that there are very few industries which provide “such a promising outlook” than eCommerce. It is thought that one billion people will shop online and across borders by 2020. The US is predicted to be the most popular origin for 25 percent of web consumers.

“With our investments we lay the foundation to expand our leading role in cross-border eCommerce logistics, serve our U.S. customers with the best possible infrastructure and solutions, and gain future market shares,” said Brewer.

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Jun 17, 2021

Cainiao Network Launches Customer-Centric Logistics

3 min
Cainiao will focus on the customer experience in Singapore and Malaysia during its Tmall 618 Mid-Year Shopping Festival

As the logistics division of the Alibaba Group, Cainiao Smart Logistics Network has decided to provide its Southeast Asian customers with unsurpassed service during its annual shopping festival. Based on customer feedback surveys, the company will expand its real-time customer service support and speed up delivery times. ‘By expanding and deepening our services, we aim to provide a stronger logistics infrastructure that can bolster the booming eCommerce sector, support merchants’ expansion into new markets and diversify retail options for consumers’, said Chris Fan, Head of Cross-Border, Singapore, Cainiao Network.


Who Is Cainiao? 

According to TIME Magazine, Cainiao ‘is far from a typical logistics firm’. The company controls an open platform that allows it to collaborate with 3,000 logistics partners and 3 million couriers. This means that merchants can choose the least expensive and most efficient shipping options, based on Cainiao’s real-time logistics analytics. The company’s goal is to ship packages anywhere in the world in under 72 hours—and for less than US$3.00. 


For countless small business owners around the world, from coffee-growers to textile-weavers, this could change everything. Usually, it costs about US$100 to ship a DHL envelope from Shanghai to London in five days. Cainiao aims to change that. Said its CEO Wan Lin: ‘The biggest barrier to globalisation is logistics’. 


What’s Part of the Upgrade? 

Throughout the Tmall festival, Cainiao’s logistics upgrade will be divided into four critical segments: 


  • Real-time customer service support. Cainiao has launched a direct WhatsApp channel for customers to receive logistics updates and ask questions. 
  • Expansion of air freight parcel size and weight limits. Packages can now be up to 30 kilograms or 1-metre x 1.6 meters to help ship large items such as furniture. 
  • Daily air and sea freight connections. Shipping frequency will almost double to seven times weekly to maintain resilience and efficiency. 
  • Compensation for lost or damaged packages. Customers will be reimbursed up to RMB 2,000 (US$311). 


Where is the Company Headed? 

From June 1st to June 20th, the finale of Tmall, Cainiao will ensure that its customers feel confident in the company’s ability to deliver their packages. Despite global shipping delays due to COVID, the show will go on. Said Fan: ‘This series of customer-centric logistics upgrades reaffirms our goal of pursuing value-added services to enhance customers’ shopping experience while mitigating challenges posed by external factors’. 


Furthermore, Cainiao has recently expanded its Southeast Asian operations, achieving revenue growth of 68% year-over-year. In Malaysia, the logistics operation has partnered with BEST Inc. and Yunda; in Singapore, the company has partnered with Roadbull, Park & Parcel, and the Singapore Post. And if its recent measures help retain and grow its customer base, the company will be well-poised to lead the industry in resilient and customer-centric global logistics. ‘COVID-19 made everyone realise how important the logistics infrastructure backbone is’, said Wan. ‘And it gave us a peek at what Cainiao should look like in three years’. 



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