Dexion partners with DHL Supply Chain Hong Kong to create Interlink MegaHub

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.