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With the acquisition, DHL Supply Chain expands its reverse logistics solutions, becoming the largest provider of returns processing in North America.
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DHL expects accelerated growth from key industry sectors including e-commerce and retail.
DHL Supply Chain, the Americas leader in contract logistics, announced the acquisition of Inmar Supply Chain Solutions, a division of Inmar Intelligence and a leading returns solutions provider for the retail e-commerce industry. The strategic acquisition will make DHL Supply Chain the largest provider of reverse logistics solutions in North America.
“The strategic growth opportunities that the returns market brings will enhance the success of DHL Supply Chain. It also puts us on the right path to support DHL Group’s plan to achieve 50% revenue growth by 2030 compared to 2023 as outlined in our recently announced Strategy 2030.”
The acquisition will result in 14 return centers and around 800 associates joining the DHL Supply Chain business, expanding the company’s North American footprint, which currently stands at over 520 warehouses supported by 52,000 associates. Additionally, DHL Supply Chain will now strengthen its returns capabilities to include product remarketing, recall management, and supply chain performance analytics. Inmar Intelligence will retain its pharmaceutical reverse distribution business.
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In the light of a rapidly growing e-commerce market and changing consumer behavior, returns are an increasingly important touchpoint for retail customers, both in store and online. These solutions will expand the value-added services available to DHL customers and create a more strategic delivery of holistic solutions for their most complex supply chain needs.
“As companies strive to simplify their supply chain strategies and enhance their operational agility, DHL Supply Chain continues to innovate to provide comprehensive and integrated solutions. This acquisition strengthens our existing capabilities, allowing us to offer our customers a single-source solution for their entire supply chain, including the critical and complex area of returns management. This enhances the value we deliver to our customers by streamlining their operations, reducing complexity, and improving their overall supply chain efficiency,” said Patrick Kelleher, CEO of DHL Supply Chain, North America.
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He further added that, “The strategic growth opportunities that the returns market brings will enhance the success of DHL Supply Chain. It also puts us on the right path to support DHL Group’s plan to achieve 50% revenue growth by 2030 compared to 2023 as outlined in our recently announced Strategy 2030.”
“Inmar Intelligence and DHL share a deep commitment to customer-focused innovation. Because of that, we are confident that DHL will build even greater things on top of the Inmar Supply Chain Solutions foundation that we developed over time. As well, we are thrilled that Inmar associates will have an even broader set of supply chain experiences available from which they can continue to learn and develop over time at DHL. For Inmar Intelligence, this deal sets the stage for us to apply an even deeper level of focus and investment into our core businesses that are expanding rapidly,” said Spencer Baird, CEO of Inmar Intelligence.
Consumers expect retailers to provide a seamless returns process while retailers are faced with new challenges such as returns abuse and rising operational costs. Thus, the acquisition marks a logical step to foster DHL’s customer centric approach that involves collaboration, expertise, and integration to solve the greatest supply chain challenges.
“The returns market is valued at over $989 billion1 but retailers continue to struggle with the evolving consumer behavior towards the process. By adding Inmar’s reverse logistics expertise, dedicated team of experts, and its technology-driven suite of returns services, DHL Supply Chain will be able to provide data-backed, innovative solutions that help returns to be a positive experience for consumers and protect profitability in a competitive marketplace for the retailer,” said Kraig Foreman, President eCommerce for DHL Supply Chain, North America.
Enhancing commitment to sustainability
The acquisition of Inmar Supply Chain Solutions will also contribute to DHL’s strategic goal of decarbonizing its business by 2050. In the company’s recently announced Strategy 2030, sustainability is a strategic priority, recognizing its growing role as a key differentiator in the logistics sector. Assisting global customers to become carbon neutral is crucial, and DHL Group aims to achieve this by remaining the frontrunner in low-carbon logistics operations.
At the core of returns management is the need to drive sustainability, and Inmar’s technology-driven reverse logistics solutions are recognized across the industry for reducing cost and eliminating the waste generated from returned consumer goods. Emphasis is placed on recommerce, which has diverted 99% of consumer returns from reaching a landfill; an approach that aligns with DHL’s commitment to make customers’ supply chains more sustainable.
