DHL Supply Chain opens its Advanced Regional Center (ARC) in Singapore worth S$160 million (US$118.783 million).
The 90,000 sqm facility features an S$18.8 million multi-customer automation system featuring advanced robotics.
The pioneering system allows customers to enjoy the benefits of automation solution without the need for significant capital investment.
The technological enhancement uses 130 robotic shuttles to pick and store products from 72,000 locations spread across 26 levels, improving picking efficiency by 20% and utilizing 40% less space than conventional warehousing operations.
This is reportedly the first of its kind deployed by DHL globally and creates a model for the future of warehousing in land-scarce countries and dense cities where land availability is limited and expensive.
“We see the Asian region as a swift adopter of technologies for enhanced productivity and efficiency,” said Dr. Frank Appel, CEO of Deutsche Post DHL Group.
“By 2020, Asia will constitute 30% of our total revenue.”
“Facilities like the Advanced Regional Center offer a ready model of innovations that reduce complexity, improve accuracy and maximize opportunities for productivity gains.”
Co-located within the ARC is the DHL Asia Pacific Innovation Center (APIC), DHL’s first innovation center outside of Germany and a joint development with the Singapore Economic Development Board.
Launched in 2015, APIC is the first dedicated center for innovative logistics services in the Asia Pacific region and showcases futuristic technologies.
As a multi-customer facility, the ARC offers bespoke solutions such as clean rooms for life sciences and healthcare businesses, specialized infrastructure for aerospace operations and customized storage solutions for managing service parts for technology customers.
Purpose-built to industry-leading standards, the ARC facility has been awarded ‘gold status’ for its energy and environmental design.
The company has also implemented robust security measures that are in accordance with global TAPA standards.
“We’ve seen swift take up from multinational companies using the ARC as their regional or global logistics hub,” said Oscar de Bok, CEO, Asia Pacific, DHL Supply Chain.
“It also includes a multi-customer automated solution – solutions like this have previously shown within DHL to provide a space optimization of up to 40% and substantial productivity improvements, and are especially useful for customers with high value, fast moving goods which need to be processed in high volumes on a daily basis, ensuring speed, accuracy and security,” he added.
“By providing this solution in a multi-customer environment, it uniquely opens these types of solutions and advantages to a wider customer base.”
“The system is modular in design and can be expanded depending on customer needs.”