DHL Supply Chain Invests €350 Million in Southeast Asia to Expand Warehousing and Sustainability Initiatives

DHL Supply Chain is investing €350 million in Southeast Asia over the next five years, expanding warehousing capacity, workforce, and sustainability efforts. The investment reflects DHL Supply Chain’s commitment to meet the evolving needs of its customers in the region, enhance digitalization and automation, and champion sustainability in its operations.

17 October 2023 – DHL Supply Chain, a global leader in contract logistics solutions, has announced a substantial investment of €350 million over the next five years to expand its operations in Southeast Asia. The investment aims to increase warehousing capacity, strengthen the workforce, and advance sustainability initiatives.

As global supply chains undergo a significant realignment, Malaysia stands to benefit, particularly in the manufacturing sector. Being a member of ASEAN and a party to numerous free trade agreements, Malaysia has become an attractive option for diversifying sourcing options. Andries Retief, CEO of DHL Supply Chain Southeast Asia, emphasized the company’s commitment to the region, saying, “This is why we are investing €131 million in Malaysia to ensure we have the capacity and talent to support our customers’ growth here.”

DHL Supply Chain is set to expand its presence in Malaysia, with the introduction of new facilities in various regions, including two in Penang and one each in the Central and Southern regions. These additions will provide an additional 113,000 square meters of warehouse space, supplementing its existing 217,300 square meters.

Part of the multimillion-euro investments will be directed towards the implementation of advanced automation at the upcoming Penang Logistics Hub 5 (PLH5) in Bayan Lepas, Penang. Additionally, DHL Supply Chain plans to invest in Warehouse Management Systems (WMS) and digitalization initiatives, which will include state-of-the-art automated pallet storage and retrieval systems (ASRS) and GTP (goods to person) robotics technology in the new warehouse facilities, particularly for small parts picking.

In addition to expanding its warehousing capabilities, DHL Supply Chain will invest significantly in its transportation services in Malaysia, covering fleet enhancement, systems, and personnel. The company will establish its first Connected Control Tower in Kuala Lumpur, offering standardized and centralized transport services with end-to-end visibility.

DHL Supply Chain’s commitment to workforce development is evident as it plans to create 450 jobs in 2024, with a primary focus on digitalization and automation within its warehouses. The company’s employees in Malaysia have the opportunity to learn and upskill from their peers across its global network.

In addressing workforce challenges, DHL Supply Chain stands out as the only multinational logistics company with a license to bring in foreign labor to complement the local workforce where necessary.

The company is also committed to inclusivity in its hiring practices and has partnered with the Malaysian government to provide employment opportunities for the hearing-impaired and speech-disabled community. An internal Sign Language Certification Program is available to employees, enhancing communication within the organization.

Moreover, DHL Supply Chain places a strong emphasis on sustainability, with a commitment to having carbon-neutral facilities for all new builds. Currently, all of its facilities in Malaysia have achieved carbon neutrality. Recent sustainability initiatives include the integration of Smart LED lighting and solar panels across 100,000 square meters of DHL Supply Chain’s Integrated Logistics Center (ILC) warehouse in Malaysia.

Author: Terry KS

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