DHL Expands U.S. E-Commerce Growth with IDS Fulfillment Acquisition

By Ken Miller, Editor & Senior Journalist

DHL Supply Chain announced on Tuesday that it has acquired IDS Fulfillment, a logistics provider specializing in e-commerce and retail shipping, for an undisclosed sum. IDS operates four facilities in Atlanta, Indianapolis, Plainfield, Indiana, and Salt Lake City, shipping over 50,000 packages daily. DHL will now oversee these locations—covering more than 1.3 million square feet—while maintaining IDS’s existing local leadership to ensure a seamless transition for current clients.

Kraig Foreman, President of e-commerce at DHL Supply Chain North America, highlighted the strategic importance of the acquisition. He pointed out that the talent within IDS’s team is highly experienced in managing multi-customer, multi-node fulfillment operations—an area DHL has not fully capitalized on before. This expertise will help DHL expand its support for small- and medium-sized e-commerce brands.

The move aims to accelerate DHL’s efforts to diversify its U.S. customer base beyond large enterprises. The deal will bring more than 50 new customers—primarily small and medium-sized e-commerce companies—into DHL’s network. This expansion aligns with DHL’s broader strategy to enhance its capabilities and serve the entire spectrum of e-commerce shippers, especially those without sophisticated enterprise systems.

Existing IDS clients will benefit from DHL’s significant investments in technology and support, ensuring a smooth transition. About 500 IDS employees will join DHL, maintaining their current points of contact and operational familiarity. Foreman emphasized that these customers will now have access to DHL’s advanced logistics technology and growth initiatives, helping them serve their customers more effectively.

IDS also offers a proprietary “ProParcel” shipping solution, which optimizes carrier selection and delivery methods—an important advantage for smaller shippers lacking their own parcel shipping infrastructure. Foreman described this capability as a key addition, giving DHL a new parcel reselling platform to better support smaller clients and expand its market share.

This acquisition follows DHL’s earlier 2025 push to strengthen its returns and reverse logistics capabilities through the January purchase of Inmar Supply Chain Solutions. The IDS deal underscores DHL’s strategic focus on building a comprehensive, flexible logistics network that supports the explosive growth of e-commerce and the needs of small and medium-sized businesses.

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