Leading storage and materials handling specialist Dexion provided a customised racking solution for DHL’s new MegaHub warehouse in Hong Kong.
DHL Supply Chain Hong Kong (DHL) is a world leading global logistics provider specialising in warehousing and distribution. Until recently, DHL operated out of five different warehouses in Hong Kong with labour, equipment and logistics systems spread across all of these locations, requiring technicians and managers to travel regularly between the sites to coordinate operations.
DHL’s Senior Manager for Supply Chain Solutions, Tony Leung explained that there was a need to consolidate warehouse operations into one MegaHub warehouse that would maximise space, improve operations management and enhance efficiencies.
According to DHL’s Facility and Asset Manager – Operations Excellence, Kenneth Lau, Hong Kong’s notoriously high rental prices combined with major traffic slowing down transportation of goods between locations also contributed to inefficient operations.
DHL’s senior management team saw the opportunity to build a new warehouse that would consolidate all of their clients into one convenient location, allowing the logistics provider to pool all of their resources, manpower and equipment to create one giant MegaHub.
Conveniently located in the centre of Hong Kong, which is well serviced by trains, ships, planes and trucks, the Interlink MegaHub site is also a LEED GOLD and KHBEAM accredited building, designed to meet Hong Kong’s highest sustainability and safety standards, according to DHL’s Senior Director Operations Excellence – North Asia, Drew Wright.
Seeking a complete racking solution for the Interlink MegaHub warehouse, DHL, in 2011 invited five suppliers to tender. DHL wasn't just looking for a racking provider; it needed a storage solutions partner with the expertise and experience to team with for the duration of the project.
DHL engaged Dexion to fit out the Interlink MegaHub. The two companies have enjoyed a longstanding relationship, and DHL was confident Dexion could provide the right solution for design and space optimisation.
Lau explains that they sought to engage Dexion as a preferred partner so that they could standardise all their racking in the future, which would increase the sustainability of their storage solutions.
Interlink MegaHub is a 23-floor, 900,000 square foot warehousing site on Hong Kong’s Tsing Yi Island. The 23-storey building is the largest of its kind in Hong Kong, with a 15-storey ramp for trucks and eight floors above only accessible using lifts. DHL now occupies eight of these floors, which includes DHL’s offices and ramp and lift access.
According to Leung, the project was particularly complex because of the logistics involved in migrating 38 of DHL’s different clients across to the new site simultaneously, each customer having unique requirements.
Wright was happy with the way the Dexion team adapted their workforce and plans to address challenges along the way. The original six-month project plan was shortened to a two-month timeline, to which Dexion quickly adapted. Dexion was also very flexible in accommodating the changing needs of their customers during the planning stage, accommodating each and every adjustment right up until the last minute.
Walter Lai, Sales Manager of Dexion Asia Limited in Hong Kong, proposed the solution and coordinated the fitout for the DHL MegaHub project. Dexion’s solution accounted for 38 customers across eight floors, each with different requirements ranging from storage of tiny components through to large drive-in pallet racking solutions.
While most of Dexion’s racking solutions were relatively standardised, they had to consult with each customer individually to establish the right solution for their particular business requirements.
For instance, the 11th floor was designed for a major semiconductor company who needed high-density small parts storage to house millions of tiny electronic components. To accommodate the storage requirement of around 8,000 SKUs, Dexion built a rack supported raised storage area, which provided 1826 picking locations across two levels. The raised storage area provided uninterrupted floor space on both levels. Free space on the ground floor allowed easy movement and unlimited flexibility for setting up a processing area, while the upper level provided high density picking modules, making the most of the available space.
A motorised conveyor system was also installed to transfer goods between the raised storage area and the processing area on the ground floor. Dexion had to work around the building’s fire system to install the conveyor.
DHL was very pleased with Dexion’s ability to work within the tight turnaround time. According to Dexion’s General Manager Systems Solutions, Stuart Macnab, the iconic Hong Kong Interlink MegaHub is a fantastic showcase for both DHL and Dexion.
Wright agrees that every potential customer that walks in and looks at the Interlink MegaHub will see the DHL brand together with Dexion storage solutions, which is great for both companies.