DHL Supply Chain has acquired Indiana-based logistics company IDS Fulfillment as it aims to expand its network of services for small and midsize e-commerce businesses.
The unit of Germany’s Deutsche Post declined to disclose the terms of the deal for IDS, whose customers sell apparel and shoewear, health and beauty products, toys and other goods. These businesses are wrangling with new tariffs, and can be especially affected by the ending of the de minimis exemption on less-expensive products shipped from China. DHL’s deal with IDS was in place before President Trump set out his trade policies, said Kraig Foreman, president of e-commerce for DHL Supply Chain North America.
“This has been a part of our strategy, regardless of the tariff situation,” Foreman said, though the deal might present opportunities. DHL’s strategy includes developing a global fulfillment network for e-commerce companies that are smaller than the large enterprises that had been its focus. This network can include bringing multiple DHL customers into buildings to share infrastructure, potentially in several locations, shortening the distance and time for fulfilling orders.
“When you do have a network like this of multiple nodes with multiple customers, then it is an opportunity to support other aspects of the market when there is a lot of unknown activity, primarily around de minimis,” Foreman said.
he de minimis provision that ended May 2 on imports from China and Hong Kong allowed companies to avoid duties on shipments worth $800 or less. Its end spurred big online retailers such as Temu and Shein to hike prices or stop shipping directly to U.S. customers altogether. It also threatens the business models of smaller e-commerce companies that bring millions of products to American customers each year.
The IDS acquisition brings 1.3 million square feet of multi-customer warehouse and distribution space in Indiana, Utah and Georgia. IDS’s current management will stay in place and Foreman said no layoffs were planned. It is DHL Supply Chain’s second acquisition of the year, after its January deal for returns specialist Inmar Supply Chains Solutions.
Foreman said DHL Supply Chain was open to additional acquisitions, but was looking to capabilities it doesn’t yet have. “We’re not focused on buying market share.”