DHL Supply Chain commits EUR350 million in Southeast Asia, including the Philippines, to help strengthen customers’ supply chain resiliency

PENANG, MALAYSIA - Media OutReach - 17 October 2023 - DHL Supply Chain, the global market leader for contract logistics solutions, announces an investment of EUR350 million in Southeast Asia over the next ten years to expand its warehousing capacity, workforce and sustainability initiatives.

"We see many growth opportunities in the Philippines, especially in its strong retail market. Our investments in warehousing and transport capabilities are tailored to support this sector's growth. To enhance our transport network reach, we have partnered with JG Summit via our joint venture – DHL Summit Solutions Inc (DSSI). This partnership combines JG Summit's market knowledge with our specialized logistics expertise, positioning us ahead of the curve to support our customers' demands," said Andries Retief, CEO, DHL Supply Chain Southeast Asia.

DHL Supply Chain: SEA's supply chain partner of choice expanding capacity and future proofing warehouses

Spanning 50,000 square meters, the Sta. Rosa Logistics Hub will be DHL Supply Chain's biggest facility in the country, and will serve as warehousing storage space and the Country Head Office. This Hub will be a pioneer site for future digitalization initiatives deployed in the Philippines. Elsewhere in the Philippines, DHL Supply Chain continues its commitment to customers by deploying SmartOps. The suite of digital applications connects DHL's employees to its data and IT systems, providing real-time information via SmartOps-enabled wearable devices. This seamless integration improves decision-making, boosting productivity in DHL Supply Chain's warehouses.

This investment of EUR 80 million marks the beginning of a series of facility expansions in the Philippines, with plans for another 20,000 square meters site in 2025.

"DSSI also plans to expand its transport fleet by more than 25 percent to over 2,000 trucks. These vehicles will primarily serve major clients in the consumer and retail sectors and will help facilitate the expansion of DSSI's delivery networks to achieve nationwide coverage in the Philippines," added Joseph Aguilar, Managing Director, DSSI.

Investing in talent for a future-ready supply chain

DHL Supply Chain Philippines is set to bolster its workforce by adding 1,000 new roles mainly in warehouse and transportation to support its expanding business and facilities.

"We have a comprehensive career development program for our employees, with 35 percent of our current leadership roles fulfilled by our graduate program. Two of them are with the local senior management board, as we always look to provide existing employees with upward mobility opportunities. In fact, a number of the new roles created as part of the investment would be leadership roles," added Bevan Williams, Country Managing Director, DHL Supply Chain Philippines.

Championing a green supply chain management

The Sta. Rosa Logistics Hub will have environmentally friendly features, including rainwater harvesting and solar panels. The new facility will also have built-in electric vehicle (EV) charging stations, providing DHL Supply Chain with the capability to use EVs in the future.

"We have a global mandate to reduce our carbon emissions, and we will support that when the right technology is made available to us. We have taken our first step with the Sta. Rosa facility, and will look to replicate it across the Philippines," said Bevan.

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