SCD DHL Supply Chain Trims Pennsylvania Warehouse Network to Cut Costs

Carry on with a three-site strategy in the northeast to maintain service levels while reducing footprint. The team will implement this plan in phases, reserved capacity at current facilities whilst shifting non-core products. An agreement with carriers defines the policy and sets service standards for customerRight, here's the translation:. What matters is to keep them informed regarding the changes via youtubes and concise briefings, ensuring messaging is precise. The пересилання department will coordinate cross-dock moves and monitor impact on логістика margins.

analysis shows potential annual savings in the low-to-mid teens by cutting duplicate handling, reducing inter-site trips, and tightening space use. Products flow towards three primary hubs, enabling faster cycles and fewer handling steps. використовуючи revised routing options and reserved space, the пересилання team aims to reduce dwell time and підвищити throughput. informa dashboards feed real-time updates into the department‘s daily analysis. three milestones test the policy in a staged rollout, with them as the feedback loop.

Recommendation for operations and policy teams: lock in the three- phase transition with milestone reviews every six weeks. Establish a dedicated assist desk to support customers during the shift, and update agreements with partners accordingly. підвищити packaging, labelling, and handling to reclaim space and accelerate throughput. Continue sharing updates via youtubes і informa-driven reports to keep all departmentHere's the translation of the provided text to UK English:. continue monitoring risks to avoid service gaps whilst pursuing ongoing savings.

Scope and practical considerations for streamlining the Pennsylvania warehouse network

Phase one should reduce our footprint by two underutilised fulfilment hubs and reallocate volume to three core distribution centres within 90 days, targeting a reduction of occupied space by 18-22% and a 12-15% drop in labour hours. This shift will increase throughput on high-velocity goods and boost current services, with increased efficiency called out in the formal agreement and supported by Kurt as the accountable owner. The move will boost closer collaboration with customers and partners, and the plan will continue to deliver value while the system remains under active review.

The department must publish an updated agreement with primary carriers and set a frequency plan for inbound and outbound windows, aiming for an on‑time rate above 95% on core lanes. Deploy a centralised tracker to monitor daily movement and flag deviations in near real time. Align imports with a revised forwarding approach that reduces dwell time and eliminates duplicate handling; dp-dhl guidance can be called upon to calibrate routes and resource levels, improving transparency for media and editorial teams and supporting informed press coverage of the changes.

SKU rationalisation should prioritise high-velocity goods in the core footprint while moving slower items to a single consolidation hub for cutting duplication of handling. Expect inventory turns to rise by 8-12% in the first year and dwell time to fall by 2-4 days, which will shorten lead times and improve customer satisfaction more than the previous arrangement. If demand spikes occur, have another facility ready to absorb surge while maintaining service standards in the short term. This approach relies on an agreement-backed governance model and a general, data-driven basis for decision making.

Coordinate with imports to adjust frequency and timing of inbound streams, and leverage cross-docking to accelerate fulfilment. Ensure clearance is completed before the final mile, reducing bottlenecks and enabling a smoother downstream flow. Maintain strict labelling, packaging, and documentation to support faster clearance and fewer exceptions, which will directly benefit goods reliability and customer experience across the board.

Technology and data governance must deliver a single system that ties WMS, transportation planning, and the tracker into one source of truth. Use informa feeds to keep leadership informed, and prepare a concise editorial summary for the news desk and press briefings. The media team should receive near real-time visibility to craft accurate editorial pieces, while the newsroom will be able to reflect the improvements in coverage and inform them of any adjustments called for by dp-dhl alignment. This enhanced transparency will support continuous improvement and stakeholder confidence, them and beyond.

Timelines for facility closures, consolidations, and relocations

Recommendation: implement a phased closure and consolidation plan with explicit dates, triggers, and notification procedures, starting in February, to keep goods moving, support services, and maintain a closer logistics footprint for key markets.

1. Timeline framework and milestones
   • Define four phases for the initiative called NorthBridge: assessment, execution, ramp-down, stabilisation; each phase links to a location that improves closer transport times for goods and season-driven demand, aligning with company aims and enhancing engagement with them.
   • Publish a master calendar by the end of February; include go/no-go gates and a formal notification process for team members and suppliers; implement targeted reductions to the footprint without compromising core coverage.
2. People, salaries, and communication
   • Map opportunities for worker redeployment within the company; offer retraining to align with new site responsibilities; preserve base salaries where feasible; if adjustments are necessary, provide clear guidance to the team and them.
   • Notify in advance; use standard templates; deliver content via email and internal portal; warn affected individuals and provide a point of contact for questions.
3. Asset flow, location selection and technology
   • Assess goods flow, determine consolidation nodes, and select locations that are local to the largest customer clusters; aim to minimise transportation time and handling steps; plan for another backup site if needed.
   • Organise the movement of plan assets and potential purchases to support relocation; obtain images to validate layouts; ensure forwarding routes and route optimisation are ready for the switch.
4. Risk, customer experience, and centricity
   • Develop risk controls to prevent service disruption; maintain clear communication with customers; provide ongoing updates during the transition; keep them informed of milestones and status.
   • Engage team members and customers to gather feedback; emphasise centricity by prioritising reliability and speed; maintain content accuracy and visibility through the change.
5. Finance, procurement, and governance
   • Track expenditure linked to relocation and consolidation; compare capex vs opex; conduct quarterly reviews; adjust plans according to seasonality and demand patterns.
   • Document purchase decisions and rationales; align with budget; conduct post-move review to capture lessons and opportunities for improvement.

Line-by-line cost savings: labour, real estate and handling costs by site

Recommendation: initiate a granular audit of every site to identify three opportunities for tightening spending: adjust labour mix, shrink real estate footprint, and streamline handling through standardised workflows. Lock changes in an agreement with your location leaders and employees, and feed progress into the system to ensure accountability.

Labour line: reassign roles to multi-skill teams, optimise shift schedules, and deploy automation where it yields the fastest payback. In core facilities, average processing hours per order fell from 4.8 to 4.2, cutting weekly labour spending by 9-12%. The changes preserved customer service levels whilst reducing peak-season gaps.

Property line: consolidate footprint from multiple sites into three core locations, pushing occupancy efficiency from mid-60s percent to over 90%. Property expense per year at core sites declines by 8-15%, freeing capital for upgrades that boost throughput. The company's footprint becomes closer to major customer hubs.

Handling line: standardised packing, zone picking, and single-pass goods flow cut redundant touches by an average of 20-25% and reduced inbound/outbound handling time. Result: lower outbound spend and faster fulfilment cycles, especially during the seasonal peak. This yields three opportunities to optimise unit load and reduce rework across the footprint.

Mexico and imports: nearshoring to Mexico supports closer proximity to key markets and faster fulfilment. dp-dhl collaboration guides the plan with three milestones that align with the group, update the location file, and publish a newsletter for customers and stakeholders. The aim is to lower inbound transportation time by 2-4 days, reduce seasonal fluctuations, and improve working capital. The press, news, and comments from customers reveal what changed and reflect improvements and align with the season's aims.

Impact on customer service: SLAs, order cycles, and communications plan

Recommendation: implement a centralised SLAs framework within the dp-dhl system, linked to a real-time tracker that maps each order to a county hub. Target 95% on-time performance within agreed windows; apply a three-level escalation for exceptions; align salaries and staffing to peak periods; publish a weekly newsletter detailing next-release schedules and customer-facing changes, and provide content to Europe-based customers and the company’s partners. This also strengthens the services portfolio and clarifies expectations for all user groups.

Communications plan: place proactive updates in the in-system content area and newsletter, with links to YouTube tutorials and social posts. Use the tracker to deliver next-day status messages to customers and partners, including the Europe region and county-level stakeholders. What matters is timely, accurate, and jargon-free content that reduces enquiries and improves perception of reliability.

Content and system changes: acquired assets feed new service levels into the informa channel; as said by leadership, the next release adds a simplified order-visibility view. Ensure images illustrate flow and reserved steps; update content to reflect three new service levels; use the three to help customers what to expect. This step ties directly to the services provided and keeps stakeholders informed through the informed feed.

Measurement and analysis: track KPIs such as SLA compliance, cycle time by region, and first-contact resolution; monitor trends across Europe and global customers; run a quarterly analysis to adjust targets; keep a social sentiment index, and tailor content accordingly to reduce friction in enquiries and improve satisfaction.

Implementation guardrails: address risks with contingency plans; maintain three data feeds, including images and content; reserved capacity for high-priority requests; maintain updated salaries to reflect workload; continue to engage with worker representatives and county leadership; the next newsletter will summarise changes and feedback from partners and customers, said the company's team.

Workforce restructuring: redeployment options, redundancy, and hiring dynamics

Adopt a 15-day redeployment policy and launch a 30-day cross-training sprint across critical areas, with a targeted newsletter outlining redeployment paths, timelines, and KPIs for department managers.

Redeployment options include cross-training across inventory control, order processing, returns, and content services; implement job rotation, internal transfers to locations with higher demand, and short-term project assignments to boost worker versatility while preserving centricity.

For roles that cannot be redeployed, offer redundancy packages aligned with policy, provide outplacement assistance to assist employees through the transition, and a one-off bonus where applicable or ongoing bonuses tied to transition milestones. Provide a clear clearance checklist and a wind-down timeline so Kurt from HR can coordinate the process and reduce uncertainty for employees.

Hiring dynamics should balance internal movement with selective external recruitment; time postings to lock in needed skills without disrupting operations. In global operations, prioritise candidates with experience in imports and cross-border workflows to support core products and product lines, ensuring availability and to free capacity for fulfilment activities.

Maintain transparent communication through content channels, with a defined frequency of updates in the newsletter to reassure employees and reduce uncertainty. The dp-dhl approach centres on centricity and increased collaboration across departments, highlighting what your user base expects–quicker fulfilment, reliable service, and smoother transitions–while preserving product integrity and free movement of talent.

Contracts, inventory control, and risk management under the new structure

Recommendation: Implement a three-tiered agreement with fixed base rates, volume-based adjustments, and bonuses tied to on-time deliveries that meet accuracy thresholds, goods receipts, and clearance milestones. Define reserved capacity for key customers and specify what will be measured (your on-time performance, which includes accuracy, and clearance times). This framework unlocks opportunities with suppliers and provides a predictable flow for forwarding services and imports.

Inventory control framework: Use ABC analysis to classify goods by turnover and criticality, and fix minimum and maximum stock levels per item. Use cycle counting, not full annual counts, to keep accuracy above 98%. For three critical goods families, deploy vendor-managed inventory (VMI) and align with import calendars from Mexico. Use a real-time tracker to flag excess or shortage, support clearance speed, and reduce landed costs. This boosts profitability and ensures company policies align with the new framework.

Risk management plan: Map supplier exposure across regions and define alternative hauliers and forwarding routes to avoid single-point failures. Maintain reserved capacity and dual sourcing for three critical goods families. Develop an incident playbook with clear roles for employees and an editorial note with general comments for leadership. A February review is conducted to inform customers and employees about risk controls and process improvements. Use Informa feed for analytics and the Loadstar tracker to monitor transit incidents, while enforcing privacy controls over sensitive data.

Observance and governance: Align with an overarching agreement that spells out privacy, audit rights, and data retention. Schedule monthly governance reviews and capture opportunities and comments from stakeholders. Use YouTube modules for training of employees and a clear signing process so suppliers and customers can monitor effective performance. This structure should be clearly documented in February performance reports and demonstrate profitable outcomes for all partners.