Predicting the gale

Customers able to generate competitive advantages through efficient supply chain risk management with Resilience360 Wars, natural disasters, labour disputes or border closures – these are only some of the many risks that affect modern logistics. In the age of globalization, disturbances in these areas can have serious consequences, as is shown by the latest DHL survey InsightOn. The streamlining of production processes and the trend towards just-in-time deliveries have made companies ever more dependent on smoothly running supply chains. Three quarters of the companies surveyed in 2015 were affected by disturbances, and the damage incurred amounted to hundreds of billions all over the world.

Proactive goods logistics

[Photo: DHL]
[Photo: DHL]

Proactive risk management in goods logistics is thus all the more important. However, the problem is that even in international companies supply chain organizations tend to work with isolated solutions rather than considering the overall picture. They therefore often do not perceive risks outside of their own field of view. However, with Resilience360, DHL has a solution for exactly that problem.
DHL Resilience360 consists of two components:

  • Resilience360 Risk Assessment, a long-term view of potential supply chain and security risks on the basis of probability of occurrence and specifics
  • Resilience360 Incident Monitoring, a software-based platform that records current incidents in real-time and visualizes the consequences for the entire supply chain of the respective customer

First, the solution charts the customer supply chains and depicts them graphically. In live mode the system then provides continuous references to disruptions near the supply chain and thus helps companies to generate competitive advantages over the competition through rapid response.

Recognize breakdowns early

Tobias Larsson, Head of Resilience360 at DHL Customer Solutions & Innovation [Photo: DHL]
Tobias Larsson, Head of Resilience360 at DHL Customer Solutions & Innovation [Photo: DHL]

The effectiveness of Resilience360 can be shown by an example: Schmitz Cargobull, one of the world’s leading producers of truck trailers, is heavily dependent on the timely delivery of critical components. Among other things, this is due to the fact that customers can still customize the configuration of their product up to 18 hours before delivery. Therefore, it is especially important for the family-run business to recognize possible breakdowns in the supply of automotive components early, in order to avoid downtimes. “We analyzed the entire delivery chain of Schmitz Cargobull and made it graphically visible. This included the material flow as well as the pooling of supply locations. In combination with Incident Monitoring, this provided a 24/7 overview of impending disruptions, which helped the customer to implement avoidance strategies at an early stage”, explains Tobias Larsson, Head of Resilience360 at DHL Customer Solutions & Innovation.
Peter Schonefeld, Head of Supply Chain Management at Schmitz Cargobull AG, is particularly satisfied with the result: “By integrating Resilience360 into our supply chain and distribution processes, we can foresee problems and avoid them by booking alternative means of transport – long before our competitors. So in the end, we can ensure that we deliver the orders of our customers as promised.“

Website
Within the framework of continuous development, DHL Resilience360 will be re-launched in May with a new website.
Risk & Resilience Conference
On 22 September, the Resilience360 team will hold its annual Risk & Resilience Conference. According to the motto “Maintaining Network Agility in a Volatile Environment”, interesting lectures and workshops will be held on the topic of supply chains and security risk management. To register, contact resilience360@dhl.com
Author: Birgit Kupas

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