Logistics company DHL Supply Chain and Advanced Drainage Systems, a water management and septic system product provider, are partnering to expand the Southeast distribution footprint of both companies.
DHL will offer ADS transport and logistics services for the Ohio-based water management company’s warehousing, fleet and e-commerce operations from a Greer warehouse facility amid the largest uptick in building permits since 2006, according to a news release.
In 2019, DHL and ADS opened their first retail fulfillment center in Wilkes-Barre, Pa., to service customers in the Northeast. The Wilkes-Barre facility services more than 600 hardware retail stores with a 16-truck dedicated fleet. After their launch of the 100,000-square-foot facility in Wilkes-Barre, both companies decided to invest in similar facilities in Greer and Middletown, Ohio, the release said.
DHL will manage the new 131,000-square-foot facility in Greer and provide ADS with a 28-truck fleet to deliver wares to 700 retail locations across the Southeast. This move will free up ADS’s capacity to enhance its commercial trade business, according to the news release.
“Our industry experts in our construction and building supply vertical help our customers transform their supply chains into a core competitive advantage,” Mark Kunar, executive vice president of DHL Supply Chain, said in the news release. “By providing daily operational excellence and instilling a culture of continuous improvement into our operations we are able to deliver effective end-to-end logistics solutions, enabling ADS to focus its time, skills and knowledge on solving its customers’ water challenges with highly engineered solutions.”
The two companies will expect to reduce the carbon footprint of ADS deliveries by optimizing trailer space and implementing dynamic routing and round-trip matching to reduce transportation miles, according to the release.
The 356,000-square-foot warehouse operation in Middletown will also consolidate ADS’s growing ecommerce fulfillment operations and provide additional capacity for finished goods distribution throughout their network of 63 manufacturing plants and 33 distribution centers, enabling ADS to increase fill rates and reduce order cycle times.
“ADS is committed to meeting the growing demand for our products and solutions and expanding our reach through a high quality, flexible and speed-of-service logistics platform to execute our mission of better serving our customers,” Scott Barbour, president and CEO of ADS, said in the release. “Working with DHL Supply Chain, we have an exciting opportunity to further strengthen our services and support our company’s goal of generating above-market growth through the execution of our material conversion and water management solutions strategies.”