DHL Supply Chain commits EUR350 million in Southeast Asia, including Indonesia, 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 five years to expand its warehousing capacity, workforce and sustainability initiatives.

"Indonesia, as Southeast Asia's powerhouse, leading economy and one of the largest e-commerce markets in the region, provides significant business opportunities across all sectors. With the government's recent announcement to invest US$400 billion into infrastructure, the logistics and supply chain sectors can expect to increase its efficiencies here and attract more demand from companies wanting to diversify their supply chains" said Andries Retief, CEO, DHL Supply Chain Southeast Asia.

He continued, "Through our latest investments, DHL Supply Chain is positioning ourselves ahead of the curve. We want to ensure we have the capacity, technologies and trained resources so we are ready for the uptick in demand, and can help our customers future-proof their supply chains in Indonesia. The Maheswara Green Logistics Center is our seventh multi-user facility in the country, and will allow us to do that."

DHL Supply Chain: SEA's supply chain partner of choice expands capacity and future-proofs warehouses

DHL Supply Chain will expand its warehouse space by 10 percent, adding 40,000 square meters with the upcoming DHL Maheswara Green Logistics facility in West Java, Indonesia. Set to be completed by the end of 2023, this EUR25 million facility will emphasize sustainability through features such as solar panels, LED lamps with motion sensors and rainwater harvesting.

"Beyond the West Java logistics hub, we are considering expanding into other areas in Indonesia such as Surabaya, Balikpapan, Batam, and Palembang. Batam, for example, is fast becoming an alternative for many companies with its proximity to Singapore. As the leading third-party logistics (3PL) operator in sectors like consumer and retail, telecommunication, and technology, we are setting our sights on growth in the transport, engineering & manufacturing, and automotive sectors. Additionally, we aim to enhance our end-to-end omnichannel solutions," said Sivananthan SKS, President Director Supply Chain Indonesia.

Besides new facilities, DHL Supply Chain will continue its digitalization process with a cloud-based Warehouse Management System (WMS) and mySupplyChain, a digital platform, providing customers real-time visibility into their orders and shipments.

Investing in talent for a future-ready supply chain

As DHL Supply Chain Indonesia gears up for its operational expansion, it will create 500 jobs in Indonesia by 2024, primarily focusing on warehouse and value-added services. Training hubs in Bandung, Semarang, and Cikarang provide skill enhancement, keeping employees updated with industry standards and enabling them to support customers across various sectors.

DHL Supply Chain Indonesia has been ranked the #1 Best Place to Work® in 2023 and has been certified as a Great Place to Work for four consecutive years since 2020.

Championing a green supply chain management

In alignment with the DHL Group's ambition for climate-neutral logistics by 2030 and customer's Scope 3 emissions reduction targets, DHL Supply Chain Indonesia is set to expand its electric vehicle (EV) fleet to 11 by 2025. The commitment to a greener footprint also sees the implementation of Carbon Neutral Building (CNB) standards across its local facilities. This encompasses investments in International Renewable Energy Certificates (I-RECs), smart metering, solar panels, energy-efficient air conditioners, and EV charging stations.

Additionally, the GoGreen program, central to DHL Supply Chain's sustainability vision, sees the team working with enrolled customers to identify and implement eco-friendly operational solutions in their supply chain in Indonesia.

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