DHL launches a 'virtual warehouse' for importers

By Ahmed ElAmin

- Last updated on GMT

Related tags Chief executive officer

As part of a new international shipping and distribution service,
DHL plans to offer companies customized transit reports on all
their imports.

DHL created the new service to for customers with multiple collection points in the US. The company claims its consolidated distributed service reduces brokerage fees and shortens delivery times when companies import food and other goods from Asia,Europe and Latin America.

"During the pilot stage of the service with US-based customers, CDS reduced cycle times and improved time-to-market; eliminated warehousing and distribution center costs, and reduced inventory carryingcosts and customs clearance costs for several large DHL shipping customers, while providing point-to-point tracking services,"​ the company claimed.

DHL is now offering the service to all high-volume US importers who are want to streamline their supply chain. The new service is particularly useful for companies with multiple final delivery points withinthe US, the shipping company stated.

"By linking the unique capabilities of DHL's heavy weight and express operations, we are now able to create a virtual moving warehouse in the air or over water,"​ stated Hans Toggweiler, DHL's chief executive officer for the company's Danzas Air & Ocean unit in North America.

Products manufactured offshore are prepared with US domestic shipping labels that are placed on the packages. DHL then ships them via air or ocean. After arriving at a DHL Danzas Air & Ocean U.S. import gateway, the shipments clear customs as a bulk clearance under one customs entry.

The shipments are then broken down and sent though DHL's express delivery network, where they are sorted at one of 21 hubs and regional sort centers. The customer receives one invoice for the entire CDS move, including clearance charges, duties and taxes.

DHL claims it was able to decrease the average inventory holding time for a manufacturer from over 60 days to less than one week during testing.

"The CDS service also improved shipment visibility, allowing the manufacturer to provide timely information to end consumers more quickly than through their previous carrier,"​ DHS claimed. "Overall, CDS led to tens of thousands of dollars in savings and a global improvement in on time service performance."

The various shipments are then sent on to the delivery points using the DHL's US express delivery service. Customers receive one invoice for the entire shipment,including clearance charges, duties and taxes. US companies can prepare shipments by using one of DHL's automated processing systems.

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