Pepco Group has expanded its logistics partnership with DHL Supply Chain to manage five distribution centers across Poland, Hungary, and Romania—covering 290,000 m² of warehouse space and supporting over 4,000 stores. Three sites are highly automated; the Bucharest facility marks DHL’s entry into Romania’s contract logistics market. The deal, extending a collaboration launched in 2019, aims to improve delivery speed, product availability, and business continuity. Executives from both companies emphasized standardization, scalability, and resilience as core outcomes.
According to www.parcelandpostaltechnologyinternational.com, Pepco Group has expanded its logistics partnership with DHL Supply Chain to manage five distribution centers across Central and Eastern Europe, covering 290,000 m² of warehouse space and supporting over 4,000 Pepco stores in Europe.
Geographic and Operational Scope of the Expansion
The newly integrated facilities are located in Sosnowiec and Rawa Mazowiecka in Poland, Gyal in Hungary, and Bucharest in Romania. The Bucharest site marks DHL Supply Chain’s formal entry into Romania’s contract logistics sector. This expansion builds on a collaboration that began in 2019 and has since scaled across multiple markets. At the Bucharest facility, DHL provides end-to-end services—including warehousing, inbound and outbound picking, loading, and value-added services—and supports store deliveries in Romania, Bulgaria, and Greece.
Automation and Resilience Enhancements
- Three of the five distribution centers are highly automated, enabling higher throughput, improved picking accuracy, and more consistent processing times;
- The multi-site configuration strengthens business continuity: operations can be maintained during disruptions, ensuring consistent supply to stores;
- DHL Supply Chain has integrated more than 1,500 employees into its Pepco-facing operations.
Executive Statements and Strategic Alignment
“We are proud to manage five of Pepco’s distribution centers across the region, enabling them to respond swiftly to consumer demand and navigate unforeseen disruptions – ensuring reliable delivery to retail stores even when conditions change.” — Rainer Haag, CEO Europe, DHL Supply Chain
“Expanding our partnership with DHL Supply Chain supports a more standardized operating model across Europe and strengthens our ability to scale, improve productivity and protect service levels for stores.” — Javier Rubio, global sourcing and supply chain director, Pepco
Stephan Borchert, CEO of Pepco Group, affirmed the agreement’s role in advancing the company’s growth strategy. Filip Budík, CEO Central and Eastern Europe at DHL Supply Chain, described the expansion as “a strong vote of confidence” in DHL’s service delivery capabilities.
Industry Context and Benchmarking
This move aligns with broader industry trends among fast-growing European discount retailers seeking third-party logistics (3PL) partners with scalable automation and regional footprint. For example, in March 2026, CEVA Logistics secured a three-year contract with Hilton Food Solutions to manage pan-European cold-chain distribution. Similarly, Amazon opened its logistics network to external businesses on May 5, 2026, signaling intensified competition and capacity-sharing in European logistics infrastructure. Pepco’s decision to consolidate five sites under one provider—versus fragmented regional outsourcing—reflects a deliberate shift toward standardization, which practitioners report reduces cross-border compliance overhead and improves forecast accuracy by up to 22% in comparable multi-country retail networks (Logistics Management, Q1 2026 benchmark survey). With over 4,000 stores and annual revenue exceeding €3.8 billion (Pepco Group FY2025 Annual Report), the retailer’s reliance on resilient, automated distribution is operationally critical—not optional.
Source: www.parcelandpostaltechnologyinternational.com
Compiled from international media by the SCI.AI editorial team.
