DHL Supply Chain opens cutting edge Singapore facility

by Payload Asia

DHL Supply Chain, a global leader for contract logistics solutions, recently launched its Advanced Regional Center (ARC) in Singapore . Built at an investment of more than S$160 million (US$116.8 million), the new 90,000 sqm facility features an $18.8 million multi-customer automation system featuring advanced robotics.

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 by 20 per cent and utilising 40 per cent 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.

Tharman Shanmugaratnam, Deputy Prime Minister & Coordinating Minister for Economic and Social Policies, Singapore (3rd from left) and Frank Appel, CEO, Deutsche Post DHL (3rd from right) and DHL Supply Chain Senior Executives at the DHL Supply Chain Advanced Regional Centre Launch.
Tharman Shanmugaratnam, Deputy Prime Minister & Coordinating Minister for Economic and Social Policies, Singapore (3rd from left) and Frank Appel, CEO, Deutsche Post DHL (3rd from right) and DHL Supply Chain Senior Executives at the DHL Supply Chain Advanced Regional Centre Launch.

“As an organisation, our spirit thrives on a hunger for new knowledge and innovations that we can bring to customers to meet the challenges of Industry 4.0, the fourth industrial revolution.  We see the Asian region as a swift adopter of technologies for enhanced productivity and efficiency. By 2020, Asia will constitute 30 per cent of our total revenue. Facilities like the Advanced Regional Center offer a ready model of innovations that reduce complexity, improve accuracy and maximise opportunities for productivity gains,” said Frank Appel, CEO Deutsche Post DHL Group.

Co-located within the ARC is the DHL Asia Pacific Innovation Center (APIC), DHL’s first innovation centre outside of Germany and a joint development with the Singapore Economic Development Board (EDB). Launched in 2015, APIC is the first dedicated center for innovative logistics services in the Asia Pacific region and showcases futuristic technologies.

“We are witnessing a pivotal chapter in the transformation of the Singapore logistics industry, as these best-in-class supply chain practices exemplified by DHL’s Advanced Regional Center start to take off in Singapore,” said Kelvin Wong , assistant managing director of the Singapore Economic Development Board. “DHL’s decision to locate their first innovation center outside of Germany in Singapore is another testimony to Singapore’s commitment to promote supply chain innovation.”

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, specialised infrastructure for aerospace operations and customised storage solutions for managing service parts for technology customers.

Purpose-built to industry-leading standards, the ARC facility has been awarded ‘gold status’ for its energy and environmental design. The company has also implemented robust security measures that are in accordance with global TAPA standards.

“We’ve seen swift take up from multinational companies using the Advanced Regional Center (ARC) as their regional or global logistics hub,” said Oscar de Bok, CEO, Asia Pacific , DHL Supply Chain. “By providing this solution in a multi-customer environment, it uniquely opens these types of solutions and advantages to a wider customer base. The system is modular in design and can be expanded depending on customer needs,” he added.