DHL Supply Chain, the contract logistics unit of DHL Group, has been chosen by Boohoo Group to manage its first U.S. distribution center.
DHL Supply Chain will provide Boohoo, a U.K.-based fashion retailer generating annual sales of over $2.4 billion, with best-in-class warehousing solutions to enable the company’s expected growth in the U.S. market. DHL Supply Chain will lead the operation of a new 1.1 million-square-foot distribution center located in Elizabethtown, Pa., southeast of Harrisburg. The location, expected to open in early 2023, will allow the company to offer next-day service to the New York City metro region.
“Although Boohoo has been servicing the U.S. through its existing network in the U.K. since 2006, the company’s growing order volumes and customer demand on this side of the pond in recent years made a U.S.-based distribution center for direct-to-consumer fulfillment a necessity,” said Kraig Foreman, president of e-commerce for DHL Supply Chain. “Their new facility will reduce transportation costs, improve service and drive greater agility and speed, getting the latest trends into customers’ hands faster. We’re proud to partner with Boohoo as they invest in the U.S. market and prepare for future growth.”
DHL Supply Chain will hire 1,000 workers in its first year at the state-of-the-art warehouse, with nearly 2,500 employees expected over the next three years. The site will feature several amenities, including a kitchen/canteen with fresh food prepared daily, as well as an on-site gym and activity area. The site also will include a recruiting and training center to allow for faster hiring and training of new workers.
DHL Supply Chain plans to introduce highly automated solutions, like an Automated Storage and Retrieval System (ASRS) and a high-speed pouch sorter at the Boohoo site in the next three years. These systems work together to put away and replenish inventory, in addition to providing picking and pack sortation. This will be one of the first sites within DHL Supply Chain’s operations to feature this technology.
“We have a loyal and growing customer base in the US and want to provide them with a faster and smoother service than we can currently offer from the UK,” said David James, supply chain director at Boohoo. “Investing in our distribution network in the U.S. illustrates the confidence we have to grow our business in this important market. We chose DHL Supply Chain as our logistics partner because of their industry-leading expertise in managing highly complex e-commerce operations and their proven track record with successful startups in the space.”
James said inventory management is an important element of Boohoo’s overall business and its commitment to a superior customer experience.
“We trust DHL Supply Chain to handle our operations at our new U.S. site, leveraging their commitment to advanced digitalization to ensure we meet our customers’ expectations,” he added.