UP2Tech adopts DHL Supply Chain's new logistics model and safely scales its e-commerce

A well-structured and efficient logistics plan can transform a business, yielding significant financial results. This is demonstrated by the partnership between UP2Tech, a telecom equipment specialist, and DHL Supply Chain, a global leader in warehousing and distribution. Established in the B2B market, UP2Tech was looking to scale its e-commerce operations for end customers when it contracted DHL Fulfillment Network (DFN), a solution to support the growth of digital sales that provides access to shared warehousing infrastructure, transportation network, technology, and a specialized team. With strengthened logistics, UP2Tech consolidated its B2C e-commerce business and achieved monthly sales of R$1,400,000.

Before the new model, UP2Tech faced challenges in terms of processes and delivery reliability, which ultimately hindered more robust growth in digital sales. "With DFN, we achieved scalability safely. DHL has tropicalized its global e-commerce model and demonstrated great operational flexibility and systems integration. This provides a controlled, secure environment with well-designed processes, which allows for constant development and a near-zero return rate," says UP2Tech CEO Rodrigo Abreu.

DHL Supply Chain, through DFN, handles all UP2Tech e-commerce logistics, from product receipt, inspection, storage, order picking, shipping, and transportation. In this last area, deliveries are made both to supply partner marketplace warehouses and to end customers via road and air. DHL also handles labeling of some products and reverse logistics for exchanges. Also noteworthy is the rapid model transition (only six weeks, and just before Black Friday) and the end-to-end online visibility of the logistics process through the MySupplyChain platform.

"By accessing DFN, UP2Tech reaped other important benefits. It tied up less capital in logistics structures, accessed the scale and reach of DHL's network throughout Brazil, and captured synergies during peak sales periods. All of this with on-demand payment, a format that's ideal for e-commerce, where volumes fluctuate significantly," highlighted Ligia Pucci, general manager of DFN at DHL Supply Chain.

UP2Tech's e-commerce director, Taylan Blanco, adds that "when we worked with our previous provider, we spent a lot of time supervising and ensuring that the agreed SLAs would be met. DHL resolved a number of bottlenecks and delivered a seamless operation that allows us to focus on our core business. Furthermore, we have a highly qualified project team and close support. All of this gives us the confidence to move forward with our expansion plan and meet peak volumes like Black Friday and other important promotional events in this market."

UP2Tech and DHL Supply Chain plan to expand their partnership. The idea is to leverage DHL's network of hubs across the country to advance inventory in strategic markets, reducing delivery lead times. UP2Tech is also considering connecting to the DFN network in the US to leverage its digital sales in the North American market using a model similar to that adopted in Brazil.