DHL Supply Chain boosts reverse logistics services, with acquisition of Inmar Supply Chain Solutions

Earlier this week, DHL Supply Chain, a subsidiary of Deutsche Post DHL Group, announced it has acquired Inmar Supply Chain Solutions, a division of Inmar Intelligence and a leading returns retail e-commerce services provider.

Financial terms of the transaction were not disclosed. DHL Supply Chain said that this acquisition will make it the largest North American-based provider of reverse logistics services.

Established in 1980, DHL said that Inmar Intelligence designs, builds, and operates reliable, dynamic solutions that create greater efficiencies and enable connections that unlock the potential of sophisticated marketplaces, serving as a trusted partner to brands, retailers, and healthcare companies (Inmar Intelligence will be retaining its pharmaceutical reverse distribution business).

DHL Supply Chain noted that with Inmar in the fold, Inmar’s 14 return services and roughly 800 associates will help to further expand its North American presence, which currently includes more than 520 warehouses and 52,000 associates. What’s more, it added that this acquisition will help DHL Supply Chain to boost its returns offerings, which will include product remarketing, recall management, and supply chain performance analytics.

“The returns market is valued at over $989 billion but retailers continue to struggle with the evolving consumer behavior towards the process,” said Kraig Foreman, President eCommerce for DHL Supply Chain, North America, in a statement. “By adding Inmar’s reverse logistics expertise, dedicated team of experts, and its technology-driven suite of returns services, DHL Supply Chain will be able to provide data-backed, innovative solutions that help returns to be a positive experience for consumers and protect profitability in a competitive marketplace for the retailer.”

A DHL Supply Chain spokesperson told LM that DHL Supply Chain recognized the untapped potential in the returns market, and the company has identified returns as a major component of its growth strategy.

“DHL Supply Chain has seen significant growth in its returns business in the last several years and with this acquisition we will expand our expertise and solutions, complementing our strengths in returns processing and re-fulfillment to offer a more complete solution to the market,” she said. “We expect this acquisition to accelerate our ability to capitalize on the opportunity in the returns market. Together, we will create a returns management business that is unmatched in its size, scale and best-in-class capabilities and talent, positioned to invest in leading technologies and solutions to fuel long-term growth. This will help us further optimize our customers’ reverse supply chains and improve their bottom line.”   

When asked about the main competitive advantages, or benefits, of this deal for DHL Supply Chain, the spokesperson explained that in the light of a rapidly growing e-commerce market and changing consumer behavior, returns are an increasingly important touchpoint for retail customers, both in store and online.

“This acquisition strengthens our existing capabilities, allowing us to offer our customers a single-source solution for their entire supply chain, including the critical and complex area of returns management,” she said. “Additionally, it enhances the value we deliver to our customers by streamlining their operations, reducing complexity, and improving their overall supply chain efficiency.”

From Inmar’s perspective, Spencer Baird, CEO of Inmar Intelligence, said that Inmar Intelligence and DHL share a deep commitment to customer-focused innovation.

“Because of that, we are confident that DHL will build even greater things on top of the Inmar Supply Chain Solutions foundation that we developed over time,” he said. “As well, we are thrilled that Inmar associates will have an even broader set of supply chain experiences available from which they can continue to learn and develop over time at DHL. For Inmar Intelligence, this deal sets the stage for us to apply an even deeper level of focus and investment into our core businesses that are expanding rapidly.”

Ben Gordon, founder and managing partner of Palm Beach, Florida-based Cambridge Capital, and managing partner of BGSA Holdings, told LM that reverse logistics has never been more important, adding that this deal showcases that.

“The deal gives DHL 14 returns centers, along with returns capabilities including product remarketing, recall management, and supply chain performance analytics,” said Gordon. “In 2024, consumers returned 17% of their purchases, equal to $890 billion. Returns have doubled in the five years since 2019. Every major logistics giant should be thinking about returns. In 2015, FedEx bought GENCO for $1.4 billion. In 2023, UPS acquired Happy Returns for $465 million. And now DHL has bought its first major platform here. Indeed, this is why we at Cambridge Capital invested in ReverseLogix. What will DSV, K&N, GXO and other global giants do?”