In order to better target the e-commerce and small to medium enterprise (SME) segment of the market, DHL Supply Chain on Tuesday acquired US e-commerce fulfillment and retail distribution logistics provider IDS Fulfillment.
The acquisition adds more than 1.3 million square feet of multi-customer warehouse and distribution space to DHL’s portfolio. This includes facilities in Indianapolis, Indiana; Salt Lake City, Utah; Atlanta, Georgia; and DHL’s home city of Plainfield, Indiana.
IDS Fulfilment’s business model centres on supporting smaller e-commerce organisations — an area where DHL is keen to expand its reach. “E-Commerce has been a growth driver for DHL in recent years and is an important focus in our Strategy 2030 agenda,” said Patrick Kelleher, CEO of DHL Supply Chain North America. “The acquisition of IDS Fulfillment not only expands our operational footprint but also ensures small and midsized companies have access to our state-of-the-art logistics solutions designed for their specific requirements.”
In 2024, ecommerce sales in the US reached $1.192 trillion — more than double the total sales for 2019, before the pandemic, when US sales totalled $571.088 billion.
E-Commerce from front to back
The acquisition of IDS is DHL’s second major acquisition in 2025 targeting the e-commerce space. The company also purchased Inmar’s reverse logistics business in January, a move which added 14 return centres and around 800 associates to DHL’s Supply Chain business, expanding the company’s North American footprint to make it the largest returns processing provider in the region.
“With global e-commerce set to grow at a CAGR of 8% per annum by 2029, DHL is targeting investments that further expand our capabilities to meet the needs of this growing segment and make our network and solutions easily accessible to businesses of all sizes. IDS Fulfillment complements our existing DHL Fulfillment Network, enhancing our ability to offer seamless global eCommerce solutions with local expertise and reach. Especially timely as more multi-national organizations are looking to establish fulfilment capabilities in North America,” said Oscar de Bok, Global CEO, DHL Supply Chain.
As the world’s leading contract logistics provider is focused on offering scalable e-commerce solutions, the IDS acquisition not only adds a network of additional facilities, but also includes a diverse customer portfolio and additional fulfillment expertise. “These acquisitions demonstrate our commitment to continued growth in the e-commerce sector and reinforce DHL’s leadership position as the logistics provider of choice for customers of all sizes,” Kelleher added.
Committed to ensuring a seamless transition for customers and associates, DHL will continue to operate all IDS facilities under existing local leaders.
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