Four Key Strategies to Boost Supply Chain Resilience

DHL has unveiled its latest Trend Report, “Supply Chain Diversification,” which offers a comprehensive framework for companies looking to enhance supply chain resilience, flexibility, and sustainability. The report introduces a novel model developed in collaboration with Professor Richard Wilding OBE, a leading expert in Logistics and Supply Chain Management. This model explores four dimensions: multi-shoring, manufacturing and supplier networks, modes of transportation, and logistics operations.

In response to recent geopolitical crises and other disruptions, supply chain diversification has become a critical focus for many companies. DHL’s new report defines supply chain diversification as a proactive approach that incorporates several dimensions to minimize risk. This includes multi-shored supply networks, multi-sourcing, parallel transportation modes, and concurrent or redundant logistics operations.

“This latest DHL Trend Report underscores our aim to be at the forefront of supply chain trends to empower our customers and businesses across industries,” said Klaus Dohrmann, Vice President at DHL Customer Solutions & Innovation. “We equip companies with the latest research, our industry expertise, tools, and logistics solutions needed to bolster resilience, drive agility, improve sustainability, and grow their competitive advantage.”

The four dimensions of supply chain diversification

The report provides tangible customer case examples, enabling companies to assess their diversification level and devise a suitable strategy. The four dimensions of supply chain diversification detailed in the report are:

Multi-Shoring: Spreading manufacturing and supplier locations across different regions or countries to mitigate risks, including duplicating manufacturing capabilities and using the same supplier in different locations.
Manufacturing & Supplier Network: Expanding the network to include redundant suppliers and manufacturing capacities to address financial and operational risks.
Mode 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.
Logistics Operations: Expanding logistics infrastructure to include additional functions like hubs, warehouses, and distribution centers, potentially adding redundant capacity nearby and outsourcing certain logistics activities for diversification.

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