Singapore, an island city-state known as a hub for global commerce, finance and transport, has taken a giant step into a new era of warehousing with the opening of DHL Supply Chain’s Advanced Regional Center (ARC) in April. JDA is proud to be a part of this initiative and we believe it ushers in a new era of warehousing that will redefine the efficiency, scalability and profitability of warehouse operations around the world.
The new facility was built at an investment of more than US$160 million. But the game-changing technologies DHL invested in are even more noteworthy. ARC features a US$18.8 million multi-customer automation system featuring advanced robotics. And DHL selected the JDA Warehouse Management System (WMS) to integrate tightly with the material handling (Dematic Multishuttle) system. This is not just a new warehouse. It’s a new breed of warehouse.
Multi-customer automation for cost-effective scalability
It’s normal practice around the world for warehouses to implement automation to serve single customers. What’s different about ARC is that its automation system is designed to serve multiple customers. This means that after making the upfront capital investment in automation, DHL will be able to add on other customers to use the same system and therefore spread that initial cost over an increasing customer base. And they will be able to keep doing that over a longer time frame. The system also enables greater productivity gains from the warehouse labor force as operations scale.
WMS provides the flexibility to adapt to an unknown future
Clearly, being able to add on new customers to ARC will quickly drive return-on-investment and profitability for DHL. But how can you know who those future customers are going to be? And how can you predict the requirements that you will have to accommodate? You can’t, but JDA WMS provides the flexibility that will enable DHL to adapt to any requirement from any new customer.
Part of JDA’s Intelligent Fulfillment solution, JDA Warehouse Management is a comprehensive, real-time warehouse and distribution center management system that skillfully handles real-world disruptions to help drive improved performance and competitive edge. By optimizing every move in the warehouse, operations run more smoothly, accurately and efficiently.
Agile and profitable for the omni-channel world
The Singapore ARC is the first facility of its kind deployed by DHL globally and creates a model for the future of warehousing, particularly in land-scarce countries and dense cities where land availability is limited and expensive. The government of Singapore recognizes that the old way of running multiple shared warehouses is too inefficient for serving an omni-channel world. The purpose-built DHL ARC provides the agility and profitability needed to compete.
Co-located within 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 advanced technologies, including the JDA Warehouse Management System.
To learn more, the ARC opening has received significant news coverage. Channel News Asia provides a video of the center.