DHL Supply Chain recently released a white paper highlighting that a third of companies are operating more than 10 supply chains – leading to high costs, waste and reduced agility.
“The Plug-and-Play supply chain: Beyond efficiency to growth” is a white paper by Lisa Harrington, President of the lharrington group LLC 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 found that this trend of needless supply chain waste is a result of years of prolonged growth, M&A activity and globalization which have transformed business operations but left supply chains in a complex underdeveloped web. The white paper suggests that the solution to these problems lies in the ‘Plug and Play’ approach that standardizes 70-80 percent of supply chain operations at the core of a business. Through this smart segmentation a cost-efficiencies can be delivered and a tailored service can then be developed that drives growth and profitability.
The author of the white paper, Ms. 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 percent of our survey respondents said they were now actively looking into standardization solutions to reduce cost, inject agility and streamline operations. However, only 16 percent of businesses believe their standardization efforts are well under way or complete. This suggests a lack of strategic direction as to what the end result should look like.”
Gary Keatings, Vice President Solutions Design, DHL Supply Chain, said, “There is clearly a fundamental shift taking place with the majority of companies looking seriously at supply chain standardization as a way to achieve growth and drive profitability. As strategic partners to businesses that have embarked on this journey, we’ve developed a considerable knowledge-base on best practice in this area that is reducing the costs of future implementations and making them faster to achieve. Our database and library of best practice means profiles of new supply chains can be matched in percentage terms against existing, operational Plug and Play supply chains. This means if a new customer has a 70 percent match in terms of the qualities of a best practice example, we can work with them to develop the solutions that will complete the remaining 30 percent. This approach has reduced start-up implementation lead time and cost by up to 70 percent.”
For more information, you can read and download the “Plug and Play” white paper directly here.