DHL Strengthens its Presence in Silao and Chihuahua

DHL Supply Chain announced the company plans to incorporate two cross-dock complexes in Silao and Chihuahua with the goal to improve its logistics solutions and supply chain flexibility schemes. 

The new cross-docks will strengthen DHL's network, which currently has 11 complexes, reported Expansión. The merchandises with consistent demand and fast-moving products will benefit the most from these supply chain models. "Chihuahua and Silao are not cities which would normally handle merchandise volumes. Usually, arrivals were managed by other cities such as Guadalajara and Hermosillo. Nevertheless, these cities have been growing and have become an important connection to secure the supply chain capacity," declares Juan Carlos Aderman, Vice President of Transportation at DHL Supply Chain Mexico to Expansión.

Cross-docking is a procedure implemented to accelerate the process in the supply chain where products from manufacturing or supplier plants are distributed directly to a customer or retail chain with little to no storage time. In simpler terms, the complex allows companies to remove the "storage" link from the supply chain, according to DHL's website.

In addition, the company plans to incorporate hybrid trucks into its operations to achieve its global goal of being a zero-emission company by 2050 in the country. Last year the company acquired its first fleet of commercial vehicles with an investment of US$785,000 plus US$53 million for the acquisition of 1,500 vehicles in Mexico, reported the company. "A critical issue, which may seem political but happens to any company, is the cost of electricity. This cost depends on the city and there is an influential subject of creating electrical capacity in the following years. If there is enough electrical capacity at a reasonable price, you will see many more electric vehicles," said Antonio Arranz, CEO at DHL Express Mexico to Expansión.  

MBN previously reported that DHL Supply Chain aspires to create a network of networks in Mexico that incorporates all the digital capacities and infrastructure of the company. "Optimized operations, with cost-effective fulfillment centers and transport solutions, will be as crucial as technology implementations that provide efficiency and end-to-end visibility to the e-commerce supply chain," states DHL in a report.