DHL Supply Chain launches the India Fulfilment Network to propel India’s e-commerce industry.

 

Invests INR 25 crores toward enabling SMEs to leverage the growing e-

commerce market through the launch in Bangalore

 Fully integrated end to end fulfillment solution on ‘Pay Per Use Model’ also

assists larger businesses to de-risk through additional ready-to-use hubs

Monday, September 13, 2021 – DHL Supply Chain (“DHL”), the global market leader in contract

logistics, launches its latest offering – the India Fulfilment Network (IFN), in Bangalore today. This

first-of-its-kind service will be rolled out to benefit the growing number of small and medium

retail businesses that have seen a shift in their business models to online marketplaces, largely

spurred by movement restrictions caused by the ongoing pandemic. DHL will invest more than INR

25 crores to further scale this network across major metros and state capitals in the country over

the next 12 months.

Even before the pandemic, the opportunity in the e-commerce market in India has been evident

and is expected to grow at a CAGR of approximately 27%i by 2024, with a large number of sellers

in various categories showing a keen interest in shifting to an omni-channel model. The e-

commerce boom during the Covid-19 pandemic has further boosted online retail transactions

across India, especially with government-imposed social distancing protocols and a resultant

decline in customers at brick and mortal shops. Relatedly, the expansion of e-commerce and 3PL

sectors is also fueling demand for warehousing, which is expected to increase at 160%ii

.

The IFN is a launch pad curated for easing the B2C fulfillment process. It is a 360-degree supply

chain solution for enterprises across sectors, allowing them to manage their immediate operations

seamlessly in a fully online marketplace scenario. In addition to this, the IFN also offers

transportation linkages to customers, providing last mile delivery services to further bolster their

independent dot.com models. DHL’s strategically located sites, in proximity to the major urban

centers, offer SMEs a multi-user network solution with access to its established services that

would support them across the entire supply chain. This ‘plug and play’ model that provides end-

to-end tracking and monitoring will enable merchants to directly sell their products across the

whole country, leveraging DHL’s network without having to make huge investments in

infrastructure and IT.

The IFN will help power Indian businesses’ e-commerce business models by providing access to

omni-channel distribution capabilities across key markets. “Ultimately the IFN allows SMEs to take

advantage of DHL’s scale in a way that is flexible and tailored to their needs,” said Vikas Anand,

Managing Director, DHL Supply Chain, India.

“We can support customers across the entire supply chain – from inbound handling and storage,

pick and pack, last-mile delivery as well as handling returns, which will help accelerate and

standardize delivery times for their end consumers,” he added.

Additionally, with its “Pay-per-use model”, the IFN also gives large retailers and big brands the

option to de-risk their supply chains by having access to e-fulfillment hubs across the country, which

would be in addition to their main distribution centers. This would ensure their sales and distribution

channels are less impacted in case of local lockdowns.

DHL’s innovative approach will level the playing field between SMEs and multinational ecommerce

giants who can afford to operate in multiple markets and commit to next-day deliveries - fast

becoming the industry standard and an expectation of consumers. With DHL’sRadio Frequency (RF)

enabled infrastructure along with a robust IT platform linked to marketplaces and delivery partners,

organizations can also tailor the service to specific regions within the country, as well as scale up to

match order volumes.

With its “Pay-per-use model”, the IFN also gives large retailers and big brands the option to de-risk

their supply chains by having access to e-fulfillment hubs across the country, which would be in

addition to their main distribution centers. This would ensure their sales and distribution channels

are less impacted in case of local lockdowns.