Background on DHL Supply Chain and its Mexican Operations
DHL Supply Chain, a logistics contract division of the DHL group, specializes in warehouse management, transportation, and supply chain operations for various sectors such as consumer goods, retail, automotive, and healthcare. Operating over 2,800 facilities globally, DHL Supply Chain offers third-party logistics (3PL) services focusing on operational efficiency, technology, and scalability.
Mexico has become the third-largest revenue generator in DHL’s supply chain business, accounting for a significant portion of its operations. The rising wages in Mexico have prompted DHL to adopt robotics collaboratively, using technology from Robust.AI and soon Boston Dynamics, to enhance efficiency, reduce training time, improve quality, and attract talent amidst a more volatile labor market.
Impact of Rising Wages in Mexico
According to DHL, hourly wages in Mexico have surpassed those of other Latin American countries and are approaching US levels. This wage increase puts pressure on the company to boost efficiency to maintain pricing and service quality while competing with other regions.
- Current Hourly Wages: The average formal hourly wage in Mexico (IMSS) as of September 2025 is around $3.90, equivalent to approximately 78 pesos per hour with an exchange rate near 20 pesos per dollar.
- US Hourly Wages: The Bureau of Labor Statistics reported that the average hourly wage for private sector jobs in the US in October 2025 was around $36.70.
- Wage Gap: Despite methodological differences, the hourly wage gap between Mexico and the US is nearly 10 to 1 in favor of the US.
DHL’s Robotics Strategy in Mexico
DHL Supply Chain’s technological approach revolves around Robust.AI and its robot Carter, described as a solution designed to work alongside humans. The motivation goes beyond “reducing labor costs.” Instead, the goal is to maintain high-quality operations in a sector where workforce turnover and talent attraction are critical factors.
“As a service company, attracting and retaining high-quality labor is crucial to our success. Providing our associates with the latest technology and making their work easier makes them want to join DHL Supply Chain,” said Sally Miller, Global Chief Information Officer (CIO) of DHL Supply Chain.
In practical terms, Carter operates as a “picking assistant,” absorbing some of the physical strain involved in warehouse work. DHL emphasizes the impact on travel time, stating that less walking within distribution centers means more effective picking time, reduced fatigue, and potentially better operational performance.
“One of the benefits we see with Robust.AI’s robotic solution is that it reduces travel time: the amount of time associates spend walking. Training time is much faster because it’s very intuitive, making onboarding better and daily work easier,” Miller explained.
Quality Improvement through Automation
Automation also contributes to quality improvement. DHL asserts that the technology allows for validating picking, ensuring which item was taken, its location, and quantity. This precision can translate into fewer delivery errors, returns, and customer complaints, which become more costly as volume increases and clients demand stricter service levels.
Return on Investment
DHL does not implement automation uniformly. The company makes site-by-site decisions based on the profitability of automating, which varies depending on product type and operational design. Miller’s logic is both financial and operational: first, they measure how many people currently perform the work, how many robots are needed to increase efficiency, and what return justifies the investment.
“We make that decision site by site. Before deploying Carter at a location, we analyze how many people are doing the work today and how many robots are needed to make those people more efficient. We keep the provider, Robust.AI, committed to a return on investment,” Miller said.
In this equation, rising wages in Mexico change the decision threshold: when labor costs increase, the return on automation can accelerate. For DHL, this is not an abstract discussion but a way to preserve competitiveness in a country that has become a recipient of new logistical flows and increased operational complexity, just as clients seek more resilient supply chains.
Another effect is reputational and labor-related. Automation becomes a mechanism to attract candidates. Miller described a “word-of-mouth” phenomenon within the labor market, where workers aspire to join centers operating with technology. This results in more job applicants, valuable for an industry relying on shifts, peaks, and constant personnel availability.
“People talk. Once we have some installations operating with Carter, people will want to work where technology is deployed, especially the younger generation. One of the secondary benefits is that we receive more applications for open positions, which is excellent for being the employer of choice,” Miller said.
DHL prefers mobile robotics over fixed automation due to their flexibility, lower capital costs, and better adaptability to demand and layout changes. This flexibility helps reduce risk for an operator serving multiple verticals, from mass consumer goods to auto parts.
Boston Dynamics Collaboration
DHL’s automation strategy in Mexico extends beyond assisted picking. The company is preparing to introduce other types of robotics focused on physically demanding tasks, addressing not only wage issues but also high turnover and difficulty attracting personnel.
“Stretch is currently used for unloading containers, a very challenging task and one of the highest-turnover profiles in our sites due to its physical demands,” said Sally Miller.
Miller added that in high-unloading operations, like import container handling, the company plans to bring this robot to Mexico once Boston Dynamics establishes local support capacity.
“Given Mexico’s importance in the supply chain, we’re pushing Boston Dynamics to make it the next market,” she said.
Geopolitically, automation in Mexico is also a response to the “new normal” of disruptions: trade tensions, resilience pressures, and growing complexity. Miller summarized the operator’s perspective: when complexity rises, clients seek those who can absorb it. Efficiency backed by robotics becomes a differentiator in this new normal.
“The reality is that, as a third-party logistics provider, when our clients face complexity, they turn to us for help. Being prepared, focusing on robotics, being efficient, and leveraging our size and scale is how we assist our clients in navigating these issues. It’s part of the new normal,” Miller concluded.
