The Friday Report Blog: May 12th, 2023

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

DHL and Locus Robotics Team Up to Deploy 5000 Robots

DHL Supply Chain and Locus Robotics recently announced plans to expand their fulfillment automation deal by deploying 5,000 autonomous mobile robots (AMRs).

The Locus Origin AMRs or “LocusBots” will be deployed in 1,500 DHL warehouses and distribution centers around the world by the end of 2023. The two companies have already partnered to deploy 3,000 AMRs, with over 2,000 in operation in North America.

Sally Miller, Global digital transformation officer for DHL Supply Chain, stated the companies need for AMRs is being driven by labor challenges and the rise in e-commerce. According to Miller, LocusBots increase worker productivity by 2 to 3 times while simultaneously lowering operational and labor costs.

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Flexport To Purchase Logistics Wing from Shopify

Shopify recently announced that it will be selling its logistics wing to Flexport amid business struggles. The company reported a $193 million operating loss in Q1 of this year, compared to a $98 million loss for Q1 2022.

The deal includes e-commerce fulfillment and order storage provider Deliverr, a company Shopify acquired in 2022 for $2.1 billion. Shopify will reportedly receive 13% equity interest of stock in Flexport under the terms of the deal. The purchase will enable Flexport to increase its global footprint and support small businesses’ supply chain needs through expansion of its order fulfillment and last mile services.

In another deal with Ocado Group, Shopify has agreed to sell robotics startup 6 River Systems. Shopify purchased the tech company in 2019.

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DSV Acquires Two Arizona-based Logistics Companies

The world’s third largest global logistics provider, DSV A/S, announced plans to purchase S&M Moving Systems West and Global Diversity Logistics (GDL) for an undisclosed amount. Both logistics companies are based in Arizona and provide domestic services including trucking, air, warehousing, and trade show logistics for 11 semiconductor industry sites.

DSV states that the addition of the two companies will contribute to its logistics capabilities in a region that is emerging as a manufacturing hub for not only semiconductors but also electric vehicles and batteries.

S&M is an asset-based household goods and specialized transportation carrier for commercial items while GDL is a non-asset based 3PL. The two logistics companies currently operate over 1 million square feet of logistics space.

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