New DHL report reviews supply chain real estate

Companies are re-thinking their go-to-market strategies and, as a result, making different choices about how they locate, design and operate their distribution networks.

This has created a new landscape for supply chain real estate, according to a report published by DHL. Global and regional supply chains are changing, as they adapt to the new realities of commerce and competition.

The findings are part of The New Landscape of Supply Chain Real Estate report, which has been authored by Lisa Harrington, President of the lharrington group LLC, in collaboration with DHL.

The report states that while a healthier global economy fuels the demand for supply chain real estate, it is not the only driver.

Four other forces are at work, and they are having a transformational effect on companies’ distribution center networks.

They include:

  1. The e-commerce revolution
  2. Globalization and right-shoring
  3. Mergers and acquisitions
  4. Technology innovation

“The face of global supply chain networks is changing,” said Harrington, author of the report.

“Gone are the days of operating a static real estate portfolio and tweaking it every five to seven years. Business is too dynamic and the stakes are too high.

“The fact is, the way companies manage their supply chain real estate portfolios has morphed from a tactical/operational concern to a strategic differentiator. Supply chains that operate more nimbly and at lower cost don’t just save money. They drive growth.”

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DHL establishes Supply Chain Distribution Centre in Brazil

DHL Supply Chain, the contract logistics specialist within Deutsche Post DHL Group, consolidated the logistics operations of three Sanofi divisions in Brazil by establishing a new distribution centre in Guarulhos, near São Paulo. The project, initiated by Sanofi in 2014, covers all portfolios of Sanofi, Sanofi Pasteur and Medley Brazil. In addition to the operation of the newly installed logistics centre, Sanofi redesigned its distribution networks for the complete Brazilian market and the corresponding export processes. The development of the new site means investments of 200 million Euros between 2015 and 2020. Already today, it is one of the largest distribution centres of Sanofi worldwide and the largest operated by DHL in Brazil for the healthcare sector.

Guarulhos was chosen as the ideal location due to its proximity to Sanofi’s industrial plants, large consumer centres and main logistical hubs of the country such as the Port of Santos. With 36,000 square meters of fully air-conditioned storage area and almost 50,000 pallet positions, DHL’s Distribution Centre has increased Sanofi’s daily shipping capacity significantly, especially with regards to operations of cold chain processes. Thereby ensuring speed, quality and safety for all steps along the supply chain.

“The objective of this project was to simplify and enhance Sanofi’s storage operations and distribution network in Brazil. Consolidating these operations into a single distribution centre has enabled us to foster synergies and streamline the entire process,” says Javier Bilbao, CEO DHL Supply Chain Brazil.

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One step ahead: How data science and supply chain management are driving the predictive enterprise

DHL, the world’s leading logistics company, today launched its latest white paper highlighting the untapped power of data-driven insight for the supply chain. The white paper has revealed that most companies are sitting upon a goldmine of untapped supply chain data that has the ability to give organizations a competitive edge. While this wealth of supply chain data already runs the day-to-day flow of goods around the world, the white paper has revealed a small group of trailblazing companies are utilizing this data as a predictive tool for accurate forecasting.

“The predictive enterprise: Where data science meets supply chain” is a white paper by Lisa Harrington, President of the lharrington group LLC that was commissioned by DHL to identify the opportunities available to companies to anticipate and even predict the future. It encourages companies to get ahead of their business and direct their global operations accordingly.

Data mining, pattern recognition, business analytics, business intelligence and other tools are coalescing into an emerging field of supply chain data science. These new intelligent analytic capabilities are changing supply chains – from reactive operations, to proactive and ultimately predictive operating models. The implications extend far beyond just reinventing the supply chain. They will help map the blueprint for the next-generation global company – the insight-driven enterprise.

Jesse Laver, Vice President, Global Sector Development, Technology, DHL Supply Chain, said, “At DHL, we’re helping our customers get ahead of the competition by working with them to harness the wealth of data information from across their businesses, allowing us to develop smarter supply chain solutions that factor in their wider business operations. For our technology customers, we use data analytics to predict what’s going on in the supply chain, such as what products are in high demand, so we can tailor our solutions accordingly.”

While supply chain analytics technologies and tools have come a long way in the last few years, integrating them into the enterprise is still far from easy. Companies typically progress through several stages of maturity as they adopt these technologies. The descriptive supply chain stage uses information and analytics systems to capture and present data in a way that helps managers understand what is happening.

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How data science and supply chain management are driving the predictive enterprise

DHL, the world’s leading logistics company, today launched its latest white paper highlighting the untapped power of data-driven insight for the supply chain. The white paper has revealed that most companies are sitting upon a goldmine of untapped supply chain data that has the ability to give organizations a competitive edge. While this wealth of supply chain data already runs the day-to-day flow of goods around the world, the white paper has revealed a small group of trailblazing companies are utilizing this data as a predictive tool for accurate forecasting.

“The predictive enterprise: Where data science meets supply chain” is a white paper by Lisa Harrington, President of the lharrington group LLC that was commissioned by DHL to identify the opportunities available to companies to anticipate and even predict the future. It encourages companies to get ahead of their business and direct their global operations accordingly.

Data mining, pattern recognition, business analytics, business intelligence and other tools are coalescing into an emerging field of supply chain data science. These new intelligent analytic capabilities are changing supply chains – from reactive operations, to proactive and ultimately predictive operating models. The implications extend far beyond just reinventing the supply chain. They will help map the blueprint for the next-generation global company – the insight-driven enterprise.

Jesse Laver, Vice President, Global Sector Development, Technology, DHL Supply Chain, said, “At DHL, we’re helping our customers get ahead of the competition by working with them to harness the wealth of data information from across their businesses, allowing us to develop smarter supply chain solutions that factor in their wider business operations. For our technology customers, we use data analytics to predict what’s going on in the supply chain, such as what products are in high demand, so we can tailor our solutions accordingly.”

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Preventing a talent gap in supply chain management

When you hear about skills shortages and talent gaps, the discussion tends to surround STEM — science, technology, engineering and mathematics — professions. However, a new concern also is breaking through.

Supply chain management has become a far more complex and skill-demanding ordeal for businesses in a wealth of industries operating in virtually every location around the globe. This has been driven by the fact that commodities markets, global trade and regional economic conditions have been volatile at best, and show no signs of simplifying or stabilizing anytime soon, meaning that managers of the supply chain have a lot more variables to worry about today than in the past.

Thankfully, it appears as though many businesses, including those operating within the manufacturing sector, are working to nip this problem in the bud by providing their own types of training for supply chain managers to digest. After all, the greatest weapon in the fight against any talent gap is increased investment from the private sector in training and development, and this medicine appears to be more commonly embraced in the modern era.

Automotive excellence
Manufacturing Business Technology magazine recently reported that a new study from DHL revealed automotive giants are likely to face what it calls a “perfect storm” that will wreak havoc on supply chains from around the globe. According to the study, supply chain management professionals, specifically those looking to get a job at an automotive manufacturing firm, already are few and far between, and this problem is expected to become more complex in the near future.

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How do you deal with the talent gap in supply chain management? Share your thoughts with us in the comment box.

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