DHL Supply Chain, a leading logistics provider, has launched its latest White Paper highlighting that one-third of companies are operating more than 10 supply chains, leading to high costs, waste and reduced agility. The trend is a result of years of prolonged growth and globalization, which have transformed business operations, but left supply chains in a complex underdeveloped web.
The Plug-and-play supply chain: Beyond efficiency to growth is a White Paper by Lisa Harrington, president of the LHarrington Group that was commissioned by DHL to identify a path forward for businesses that want to streamline supply chain operations and deliver growth. The White Paper argues that the solution lies in the ‘plug and play’ approach that standardizes 70-80% of supply chain operations at the core of a business. The balance then consists of tailored solutions to meet a segment’s specific market needs.
The White Paper details how, unlike the segmentation of the past, next-generation segmentation is informed by data-driven analysis of customer and product profitability, market and geography requirements, and service parameters. These collectively enable smart segmentation, resulting in a standardized, yet custom, solution. This delivers cost-efficiencies and a tailored customer service that helps drive growth and profitability.
Harrington said, “This White Paper documents how years of neglect have created exceedingly complex and far-flung supply chains, which is costly for businesses and is standing in the way of greater profitability. With a third of businesses operating more than 10 supply chains, it’s no wonder that nearly 70% of our survey respondents said they were now actively looking into standardization solutions to reduce cost, inject agility and streamline operations. However, only 16% of businesses believe their standardization efforts are well underway or complete. This suggests a lack of strategic direction as to what the end-result should look like.”
You can download the White Paper here.
November 24, 2016