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DHL Supply Chain has invested €500m (US$560m) into Latin American markets to support its omni-sourcing strategy.
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These investments, made until 2028, are intended to strengthen DHL’s operations in Latin America. Projects include decarbonizing the domestic fleet through greener alternatives; building, developing and retrofitting its real estate assets and warehouses in the market; and significant investments into technologies, robotics and automation solutions to improve workplaces and make operations more effective, flexible and resilient for customers. The investment is part of DHL Supply Chain’s strategic investment plan to further strengthen logistics capabilities in high-demand sectors, such as healthcare, automotive, technology, retail and e-commerce, among others.
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According to the company, the location was chosen for its geographical proximity to large consumer markets in North America and its own increasing sales markets which are making it attractive for industries to invest and therefore request additional logistics support.
The company has increased its operation in the region with more than 240 locations. In Brazil, for example, it will expand and modernize its distribution center in Goiás, while expanding its operations and presence in Extrema Minas Gerais for various clients and sectors such as pharmaceutical and retail fashion.
In Chile, DHL Supply Chain has announced a new distribution center in Pudahuel, while in Mexico, where demands are high due to the trend of bringing supply nearer to the North American sales markets, the company has expanded its presence with new warehouses in Tijuana and Monterrey, as well as a new campus in the State of Mexico that will serve the e-commerce, retail, fashion, consumer, medical devices, aerospace, electronics and automotive sectors. DHL Supply Chain Mexico also inaugurated a center for electric vehicles. The mission of this new EV center is to provide synergy to the automotive industry in the region.
DHL Supply Chain is also investing in temperature-controlled medicines, medical devices and clinical trials, among others, in Latin America. In addition to the specialized distribution centers in Brazil, the company has a fleet of 500 vehicles that serve this sector. In Mexico, during the third quarter of 2022, DHL Supply Chain acquired NTA, a company focused on logistics services for the pharmaceutical industry.
Oscar de Bok, global CEO of DHL Supply Chain, said, “Companies all around the globe are looking for more diversified sourcing and supply chain strategies by bringing stock points closer to their production and sales markets. Therefore, we see increasing demand for logistics support in Mexico, Brazil and the other strategic markets in Latin America. That trend of investing in multiple source points closer to the large sales markets – which we call omni-sourcing – helps industry customers to build more resilient, robust and flexible supply chains to better cater to the needs of their end customers. That is why we are strategically investing in our logistics infrastructure in Latin America and those geographies that are strategically located and equipped to play a vital role in global trade.”
Agustin Croche, CEO of DHL Supply Chain Latin America, said, “At DHL Supply Chain we are fortunate to be an essential part of daily life; we are more than 40,000 people in this region and each of us is a unique link that contributes positively to the industry, supporting each of our clients with whom we always seek sustainable growth and long-term relationships. This is the moment for Latin America, and we must take advantage of it.”
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