“We deployed an omnichannel solution for Estée Lauder in the UK that includes autonomous mobile robots and automated packaging technologies. This has improved cycle times, boosted productivity, and lowered costs, showing how advanced technology can transform the customer experience.” – Nabil Malouli, SVP, Global e-commerce and omnichannel, DHL Supply Chain. 

As the retail industry continues to evolve, delivering a seamless and personalized customer experience across multiple sales channels has shifted from competitive advantage to a basic expectation. Omnichannel retail requires not only solid operational execution, but also bold innovation to keep up with customer expectations that are increasingly complex and demanding.

Nabil Malouli, Senior Vice President, Global e-commerce and omnichannel at DHL Supply Chain , provides a compelling perspective on how robotics, AI, and data integration are reshaping omnichannel fulfillment at scale. His insights show how DHL is navigating the complexity of multiple channels and diverse customer needs by blending advanced technology and human insight.

Three pillars of omnichannel integration

Malouli outlines DHL’s approach to omnichannel integration through three key pillars: technology, workflows, and human capital.

First, technology is central. To manage the intricacies of channels ranging from B2C direct-to-consumer shipments to wholesale and retail replenishment, DHL employs sophisticated warehouse management systems (WMS) and inventory management systems. These systems are carefully selected for their ability to integrate seamlessly across multiple channels, offering flexibility to ship to partner stores, boutiques, or large retail locations.

Second, workflow integration is key to executing omnichannel strategies effectively, and DHL prioritizes the unified management of inventory and order fulfillment workflows. For example, deciding how to allocate inventory between an online order and physical store replenishment involves tailored rules and priorities depending on the client’s business model. Warehouse layouts and operational design are optimized to prevent bottlenecks and ensure smooth processing of varying order types across channels.

Third, and perhaps most crucial, is the role of human capital. DHL invests in training teams to understand the differing importance, workflows, and requirements of each channel. Malouli notes, “Not all omnichannel are equal. A customer could be 90% online and 10% offline, and it could be the opposite. So making sure that everybody that works in operations is trained and understands the profile of the business, what is critical and what is not, what are some of the rules and so on is really important.” This human element ensures that technology and workflows are operated with the necessary contextual understanding to maximize efficiency and service quality.

Robotics and automation: The fulfillment powerhouse

A prominent feature of DHL’s omnichannel approach is its extensive adoption of robotics and automation technologies. Malouli explains, “We use a wide range of robotics technologies and have extensive experience managing them in omnichannel environments. This gives us a significant advantage in delivering differentiated value.”

These robotics capabilities enable DHL to handle huge order volumes more efficiently, reduce cycle times, and enhance accuracy, while freeing employees from repetitive physical tasks. By collaborating with leading robotics providers, DHL creates a hybrid environment where humans and machines complement each other to deliver superior fulfillment outcomes.

In the UK, for example, assisted picking robots (6RS Chucks) are transforming cosmetics fulfillment in the company’s Skelmersdale operation. Thirty-three robots support Beauty Bay and 18 more assist Revolution Beauty, guiding associates along optimized pick paths and displaying items to be picked on-screen. The result is faster picking, higher accuracy, and greater efficiency during peak volumes.

In North America, the scale is even greater. With 23 live projects and nearly 2,000 Locus Origin bots deployed during peak seasons, robots swarm through warehouses, meet operators directly in their zones, and display items to be picked. This coordinated “swarming” approach significantly accelerates throughput while reducing physical strain on employees.

In Asia Pacific, DHL’s Accelerated Digitalization and Automation team in Australia is pushing the frontier of innovation. By 2025, the team will have deployed 1,000 Autonomous Mobile Robots (AMRs) across operations. Already, they have delivered the world’s first in-rack Geek+ P800 Shelf-to-Person solution and launched the first Locus Origin Assisted Picking project in the country, milestones that reflect how robotics can overcome both high labor costs and geographic remoteness.

Meanwhile, in Europe, the Middle East, and Africa, DHL is scaling a diversified robotics portfolio. More than 300 Locus Origin Bots, 70+ 6RS Chucks, and five Autonomous Reach Trucks are already in action, with further growth planned in the coming years.

Together, these regional deployments illustrate that DHL’s robotics strategy is not limited to pilots or isolated use cases. Instead, automation is being woven systematically into global operations, reshaping how omnichannel fulfillment is executed across markets and industries.

By integrating autonomous mobile robots with automated packaging systems, DHL has not only improved operational KPIs, but has enabled the business to better meet its consumers’ expectations in a highly competitive beauty market.

AI as the brain behind the operation

Robotics hardware is just one piece of the puzzle. AI is deeply embedded in DHL’s omnichannel strategy to enhance decision-making and operational agility.

Malouli describes multiple AI applications actively deployed: “We have deployed voice agents and agentic AI for store replenishment; and AI is used to personalize sales processes and optimize carton packing for sustainability and cost efficiency. We even have AI-powered tools to support employee retention by analyzing behaviors that might predict turnover.”

This broad AI footprint allows DHL to improve everything from packaging optimization to workforce management, demonstrating how cutting-edge technology can create sustainable value on several fronts.

Data integration: Enabling real-time orchestration

A critical success factor in omnichannel fulfillment is the integration of disparate data sources, a point Malouli emphasized. DHL developed an in-house data integration platform called DHL Link, which harmonizes data flowing from multiple systems both internally and through their customers’ ERP and inventory management platforms.

This unified data layer enables precise visibility into inventory levels and order statuses across channels and locations. It is the foundation that allows AI algorithms to function effectively, facilitating prioritization of orders and optimized inventory allocation – a necessity given the complex interplay among retail stores, warehouses, and direct consumer shipments.

Personalization at scale

Perhaps one of the most nuanced capabilities DHL delivers is personalization, which Malouli breaks down into three layers:

1. Bespoke solutions tailored individually to larger client needs.
2. Channel-specific workflows that accommodate the unique requirements of different distribution points like spas, big-box retailers, or specialty stores.
3. Personalization at the single order level, including customized product packaging, engraved items, inserts, and other value-added services.

This hierarchical approach to personalization reflects an understanding that omnichannel is not one-size-fits-all, but a tailor-fit operation where both scale and individual customer delight are paramount.

The evolving role of physical stores

Although omnichannel is often seen as digital-first, Malouli emphasizes that physical stores still play a critical role. 

“Stores are here to stay. But their role must evolve, they should become digital enablers as well as physical touchpoints.”

He envisions a future where digital experiences are integrated into the in-store environment, allowing physical locations to support fulfillment, customer engagement, and inventory optimization.

Measuring success: Balancing service and cost

Malouli highlights that service and cost are the two key metrics to measure success in omnichannel fulfillment. Service is about delivering what was promised, whether that’s next-day delivery to a customer or replenishment to a store within a set timeframe.

In contrast, costs vary widely by channel: fulfilling a bulk pallet shipment differs significantly from individual direct-to-consumer orders. Achieving the right balance between speed, cost, and quality requires continuous monitoring and sophisticated technology-enabled adjustments.

Meeting ongoing challenges and future trends

Despite growth stabilizing from pandemic-driven surges, many operational challenges persist, particularly in handling returns and optimizing international inventory movement. Malouli stresses the importance of improving gross merchandise value optimization and return management, identifying them as areas ripe for innovation.

He also anticipates continuous expansion in the number of omnichannel touchpoints, including emerging social commerce platforms. Language models and AI advancements will become increasingly influential commerce enablers.

A human-centric technology future

DHL’s omnichannel strategy, as explained by Malouli, highlights that the future of fulfillment lies in the harmonious integration of sophisticated robotics, AI-driven insights, and skilled human teams. Automation beyond replacing labor becomes an enhancer, one that boosts productivity, reduces costs, and ultimately elevates the customer experience.

From navigating complex workflows to personalizing millions of individual orders, DHL’s approach demonstrates the power of combining technology and human insight to deliver true omnichannel excellence. For companies facing the challenges of today’s retail environment and those looking to future-proof their supply chains, this model offers a compelling blueprint for success.