Approach to Strategic Network Design
Customers often want to know how to optimize the setup of their supply chain network in support of business strategy. DHL Consulting leverages this service to conduct an ‘as-is’ assessment of your current network at a global / regional / country level, gaining deep understanding of your current network as a baseline for testing future scenarios and optimizing network design. We offer strategic recommendations that balance your supply chain requirements with business requirements – for example, to lower carbon emissions, reduce total cost, improve customer service, or a combination of these and other objectives. Our team undertakes thorough analyses and models multiple scenarios using state-of-the-art software to recommend an optimal, fit-for-purpose network design. We also provide an implementation plan, which includes input from DHL's global network of operational experts.
An optimized supply chain network – whether the scope is global, regional, or country-specific – will provide proactive solutions to current pain points and anticipated changes. We can help you achieve the best network design aligned to your requirements and goals, which may be cost-saving targets, market-entry initiatives, carbon footprint reduction, risk mitigation plans, and everything in between. We provide you with innovative solutions capable of transforming your operations into best-in-class supply chains.
Pharma customer achieves optimal global network
Along with business growth, one of our customers – a global pharmaceutical manufacturer – was also experiencing volume and complexity growth in its supply chain. This customer did not have a clear view of the improvement potential of its current supply chain or best-in-class practices. Through peer benchmarking and an ‘as-is’ supply chain review, DHL Consulting identified potential improvement levers and developed various network scenarios. Once these were aligned with the interests of country affiliates and commercial strategy, the team successfully modeled four supply chain network options and built the business case, all in close alignment with customer teams. Benefits of the recommended scenarios included logistics cost savings of 5-10%, with the identified improvement levers providing lower cost and/or higher service levels through regional contracting, direct delivery, new market penetration, and delivery frequency reduction.