E-FULFILLMENT DRIVES E-COMMERCE

E-commerce has been growing at record double-digit rates for several years, but it took the COVID-19 pandemic to show just how important e-commerce is to the economy, the role it plays in society, and the growth potential it holds. By helping small and medium-sized businesses handle an increasing number of orders and scale their operations, DHL Supply Chain is investing in its European Fulfillment Network (EFN).

Fulfillment (the full or partial transfer of logistics services to a logistics partner) is a solution which is increasingly being adopted by small and medium-sized online stores. For more than a year, DHL Supply Chain, the leading contract logistics provider in the Deutsche Post DHL Group, has been offering access to its European network of 30 e-Fulfillment centers, including in the UK market.

What are the benefits of being part of the EFN network?

Being part of the European Fulfillment Network gives retailers access to the infrastructure, expertise and experience in handling online orders that the global logistics provider has developed over the years. In a highly competitive market, where, in addition to product price, also time, cost and timeliness of delivery are crucial, processing orders in one of 30 modern e-fulfillment centers allows to ensure high-quality customer service. The centers are the immediate vicinity of major cities and population centers such as: London, Paris, Milan, Amsterdam, Madrid and Warsaw, and in close proximity to other facilities offering other logistics services that are important from an e-commerce point of view. This means that customers are supported throughout the entire supply chain.

- We can see that e-commerce is winning today. When creating the EFN network, we focused on developing solutions that would really help small and medium-sized companies and brands selling online to grow, giving them access not only to infrastructure and services, but above all to the experience and knowledge of a global operator such as DHL Supply Chain. – says Monika Duda, Managing Director of DHL Supply Chain in Poland.

For fast-growing companies and brands selling online, an important factor is also the complexity of taking care of logistics and transportation, including the fast and efficient handling of returns, as well as the guarantee of next-day delivery to customers in key European markets. Until recently, planned growth and expansion into new markets for most small and larger e-commerce players involved establishing, managing and developing their own e-commerce infrastructure. The opening of the EFN network by DHL Supply Chain – using proven, standardized processes and systems – enabled to comprehensively launch a new online business and compete on a level playing field with e-commerce giants and shopping platforms in all major European markets in just three months. Even faster, within a few weeks, companies already thriving online can add more service centers. This flexible and modular approach, in which customers can customize the scope of services in different regions and markets depending on their needs, opens the door not only to rapid expansion into new markets and growth of product ranges, but also to rapid response to changes or seasonal fluctuations in demand that are characteristic of the e-commerce market.

In addition to faster growth, improved service and time savings, using the fulfillment services of DHL Supply Chain also ensures financial savings. A tailored logistics plan and collaboration with an experienced logistics specialist allows to sell online without the intermediation of shopping platforms, providing brands with independence and complete decision-making power. And modular access to scale, infrastructure and logistics services translates into better control of overall logistics costs and their decrease.

AI helps in fulfillment

Logistics in e-commerce is constantly adapting to new customer expectations and the changing economic and social environment. One of the pillars of EFN development is taking care of sustainable development, the environment, and ensuring the rational use of resources. Since the beginning of April, DHL Supply Chain e-commerce customers can use the OptiCarton solution. Based on artificial intelligence, it allows for better management of cardboard packaging, which translates into up to 50 percent savings in transport space. In the case of fast-growing e-commerce volumes, this solution significantly reduces carbon emissions, lowers shipping costs and ultimately is a significant competitive advantage for the end customer.

Visit our EFN site to find out more!
https://dhlsupplychain.dhl.com/EFNPL