DHL: Four ways to bolster supply chain resilience

The report offers companies to analyze current dynamics and patterns observed, and evaluate their supply chain strategy accordingly.

– The report introduces a novel framework, exploring four dimensions to adapt supply chains for more flexibility, resilience, and sustainability: multi-shoring, manufacturing and supplier network, mode of transportation, and logistics operations

– Comprehensive definition of supply chain diversification is developed: a proactive approach redefining industry standards

– The report offers companies to analyze current dynamics and patterns observed, and evaluate their supply chain strategy accordingly

Bonn – Amidst the recent developments such as geopolitical crises, the attention is increasingly turning to supply chain diversification. Yet, until now, there has been no clear definition and comprehensive framework for this approach. Rising to the challenge, DHL and leading academics have presented a new definition and a versatile model to explain this important and holistic concept in the latest DHL Trend Report, “Supply Chain Diversification”. Supply chain diversification is defined here as a proactive approach where companies incorporate one or several dimensions into their supply chains to minimize risk. This includes multi-shored supply networks, multi-sourcing, parallel modes of transportation, and concurrent or redundant logistics operations. The report also provides tangible customer case examples, enabling companies to assess their diversification level and devise a suitable strategy.

(…)

1) Multi-Shoring: This involves spreading manufacturing and supplier locations across different regions or countries to mitigate risks. It includes duplicating manufacturing capabilities and using the same supplier in different locations.

2) Manufacturing & Supplier Network (Multi-Sourcing): Expanding the network to include redundant suppliers and manufacturing capacities to address financial and operational risks.

3) Modes of Transportation: Utilizing multiple transportation modes simultaneously, covering all stages of transport, including first mile, long haul, and last mile, to diversify routes and reduce risk.

4) Logistics Operations: Expanding logistics infrastructure to include additional functions like hubs, warehouses, and distribution centers. This may involve adding redundant capacity nearby and outsourcing certain logistics activities for diversification.

(…)

Full details can be found here.