Boohoo has chosen DHL Supply Chain to manage its first-ever US distribution centre, as the fashion retailer expands into the United States.
DHL Supply Chain will lead the operation of a new 1.1 million-square-foot distribution centre in Elizabethtown, Pennsylvania. The location, expected to open in early 2023, will allow the company to offer next-day service to the New York City metro region, a key customer area for the fashion brand – which generates annual sales of over US$2.4bn.
“Although Boohoo has been servicing the US through its existing network in the UK since 2006, the company’s growing order volumes and customer demand on this side of the pond in recent years made a US-based distribution centre for direct-to-consumer fulfilment a necessity,” said Kraig Foreman, president, ecommerce, DHL Supply Chain.
“Their new facility will reduce transportation costs, improve service, and drive greater agility and speed, getting the latest trends into customers’ hands faster. We’re proud to partner with Boohoo as they invest in the US market and prepare for future growth.”
DHL Supply Chain will hire 1,000 associates in its first year at the state-of-the-art warehouse, with nearly 2,500 expected over the next three years.
Furthermore, DHL plans to introduce highly automated solutions, such as an Automated Storage and Retrieval System (ASRS) and a high-speed pouch sorter at the Boohoo site within the next three years. These systems work together to put away and replenish inventory in addition to providing picking and pack sortation. This will be one of the first sites within DHL Supply Chain’s operations to feature the technology and is one of the most cutting-edge warehousing solutions on the market.
David James, supply chain director at Boohoo Group, added: “Our inventory management is an extremely important element of our overall business and our commitment to a superior customer experience. We trust DHL Supply Chain to handle our operations at our new US site, leveraging their commitment to advanced digitalisation to ensure we meet our customers’ expectations.”