DHL Supply Chain increases e-commerce logistics offerings, with acquisition of IDS Fulfillment

Earlier this week, Westerville, Ohio-based DHL Supply Chain, a subsidiary of Deutsche Post DHL Group, announced it has acquired IDS Fulfillment, a Plainfied, Ind.-based e-commerce fulfillment and retail distribution logistics provider.

A purchase price was not disclosed.

DHL Supply Chain described this deal as a strategic move to further enhance its e-commerce capabilities, as well as extend its services to small and midsized customers. IDS Fulfillment brings more than 1.3 million square-feet of multi-customer warehouse and distribution space throughout the U.S., in Salt Lake City, Atlanta, and Plainfield, Ind. And it added that DHL will continue to operate IDS’s facilities.   At peak IDS employees more than 500 associates. IDS associates will transition to become DHL Supply Chain associates.

“E-Commerce has been a growth driver for DHL in recent years and is an important focus in our Strategy 2030 agenda,” said Patrick Kelleher, CEO of DHL Supply Chain North America. “The acquisition of IDS Fulfillment not only expands our operational footprint but also ensures small and midsized companies have access to our state-of-the-art logistics solutions designed for their specific requirements.”

A DHL Supply Chain spokeswoman told LM that IDS not only brings a network of multi-customer facilities to DHL Supply Chain, but also a diverse customer portfolio and fulfillment expertise.

“With our expanded capabilities, small and midsized companies can take advantage of scalable fulfillment solutions that provide seamless integration along with the world-class digital tools, in-depth analytics, and service excellence for which DHL is renowned,” she said. “Integrating IDS Fulfillment’s existing network infrastructure and fulfillment expertise with DHL’s advanced operating systems, robust technology, and industry-leading logistics capabilities creates significant synergies that position us to strategically lead small and midsized companies as they scale their businesses.”

What’s more, she said that customers will access DHL’s state-of-the-art logistics solutions tailored to their specific requirements, while benefiting from IDS’s strategically located multi-customer facility network and fulfillment expertise. She also observed that as more multi-national organizations seek to establish fulfillment capabilities in North America, having scalable solutions that address their requirements is timely.

IDS Fulfillment CEO Mark DeFabis said that his company believes that DHL’s commitment to innovation and service excellence makes them the ideal partner to enhance IDS’s operations and deliver industry-leading capabilities to its customers and team members.

This is not DHL Supply Chain’s first e-commerce-focused acquisition of 2025. As reported by LM, in January, DHL Supply Chain acquired Inmar Supply Chain Solutions, a division of Inmar Intelligence and a leading returns retail e-commerce services provider. DHL said this deal made it the largest North American-based returns processing provider.

Ben Gordon, founder and managing partner of Palm Beach, Florida-based Cambridge Capital, and managing partner of BGSA Holdings, told LM that the DHL acquisition of IDS reflects the strategic importance of e-commerce fulfillment. 

“DHL is adding 1.3 million square feet of warehousing across Indiana, Utah and Georgia,” said Gordion. “More importantly, they are strengthening their ecommerce capabilities for the SMB market. This is a category poised for continued growth. Tariff volatility may in fact enhance the attractiveness of e-commerce fulfillment. I expect to see more M&A in e-commerce logistics software and services.