DHL Supply Chain opens Singapore warehouse

International supply chain specialist DHL Supply Chain has launched its new Advanced Regional Centre in Singapore. This new €90m warehouse includes a €10.6 million automation system featuring advanced robotics that will speed up production and reduce costs.

In a statement issued today (19 April), Deutsche Post DHL Group (DPDHL Group), owner of DHL Supply Chain said, “The pioneering system allows customers to enjoy the benefits of automation solution without the need for significant capital investment. The technological enhancement uses 130 robotic shuttles to pick and store products from 72,000 locations spread across 26 levels, improving picking efficiency picking by 20% and utilizing 40% less space than conventional warehousing operations.

“This is the first of its kind deployed by DHL globally and creates a model for the future of warehousing in land-scarce countries and dense cities where land availability is limited and expensive.”

The DPDHL Group statement added: “As a multi-customer facility, the Advanced Regional Center also offers bespoke solutions to cater to specific industry needs. For example, the facility boasts clean rooms for Life Sciences & Healthcare businesses, specialized infrastructure for aerospace operations and customized storage solutions for managing service parts for technology customers.”

Frank Appel, DPDHL Group’s CEO, commented: “We see the Asian region as a swift adopter of technologies for enhanced productivity and efficiency. By 2020, Asia will constitute 30% of our total revenue. Facilities like the Advanced Regional Center offer a ready model of innovations that reduce complexity, improve accuracy and maximize opportunities for productivity gains.”

Asia being a fast growing market that is far from saturation or maturity, many large delivery businesses are investing heavily in their operations there. Long term, DHL Supply Chain’s investment should gather good returns.