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Press Release

Westerville, Ohio 10/08/2012

Exel opens new distribution center in Laredo, Texas, to support U.S./Mexico cross-border supply chains

250,000-square-foot facility brings nearly 100 jobs to Laredo community

Exel, part of the supply chain division of the global logistics leader DHL, announces the grand opening of a 250,000-square-foot distribution center in Laredo, Texas to support the company’s Logistics Without Borders supply chain solution. The facility has produced nearly 100 jobs to date in the Laredo community. Grand opening activities are planned at the facility on Oct. 12, with an associate and family event on Oct. 13.

The Laredo facility is a half mile from the U.S./Mexico border, and serves as a hub for Exel and DHL Supply Chain’s Logistics Without Borders solution. This end-to-end supply chain solution incorporates several industry sectors and provides customers with one-stop access to the tools, expertise and services necessary for cross-border commerce. The facility is a multi-client, multi-industry operation that supports customer supply chains on both sides of the border. Current customers include Sensata, Flextronics, Daimler Truck, Vitromex and BOS.

“With the cost advantages of traditional offshoring increasingly offset by rising wages and transportation costs, U.S. companies are looking for opportunities to bring supplier operations closer to home. This facility is a major step in Exel/DHL Supply Chain’s strategy to do just that,” said Luis Eraña, Exel’s president for the technology, aerospace and service logistics industries. “With more than five million truck containers crossing the U.S./Mexico border per year, and with a historical growth rate of 3.9 percent, Laredo offers a perfect location for Exel and DHL Supply Chain.”

This new site, which averages 3,600 outbound loads per month, will bring further integration and expanded capabilities for Exel and its customers in an area of the world vital to global trade. Capabilities offered at the facility include: comprehensive managed transportation services, cross-docking, U.S. and Mexico customs brokerage, Vendor Managed Inventory (VMI), and value-added services such as classification. These logistics services are backed by an integrated and bilingual information technology platform that tracks inventory, facilitates and exchanges documentation, and connects into the customs clearance process.

The Logistics Without Borders facility includes sustainability design elements such as energy efficient lighting, sky lights, low-flow plumbing, a white roof system, storm water runoff containment, and a recycling program. The company has applied for Leadership in Energy and Environmental Design (LEED) certification for the site. If received, it will be the first LEED-certified distribution center in Exel’s North American real estate network and in the city of Laredo.

“Moving goods across the U.S./Mexico border is a necessity for many of our customers, however, working across the border can present challenges with things like security, customs compliance and border congestion, to name a few,” said Eraña. “This facility gives us the opportunity to leverage our cross-border expertise, while at the same time, giving our customers a best-in-class option when it comes to supply chain services at the U.S./Mexico border.”

To read more about the challenges and opportunities associated with cross border logistics, visit Link / New Window to read Exel’s most recent white paper “Globally Local: The New Face of Right-Shoring.”

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