DHL analysis enables deep dive into supplier networks

DHL further expands its supply chain management and analysis portfolio by launching the DHL Resilience360 Transparency Portal. The online collaboration service allows multinational companies to visualize the full picture of their supply network, including first tier suppliers, their suppliers and so forth. As supply chains become larger and more complex through globalization, many companies lack the visibility of their supply network and thus cannot assess risk levels accurately. By means of data collection via the Transparency Portal, they are able to identify crucial insights of their network and ultimately improve business continuity. The service is available independently but can be combined with the risk assessment and incident monitoring solution of DHL Resilience360 and all participating suppliers in the network can instantly obtain access to those capabilities.

“Lack of transparency is a key weakness in many modern supply chains. Understanding the total supplier network of one’s own operations allows businesses to ensure compliance even on a regional level and limit reputational losses in case of disruptive events by recovering quicker. Subsequently, this also reduces insurance costs since there is more clarity on supply chain risks and single point of failures. Our new portal enables us to gain these insights quickly and at ease,” explains Jan Speich, Senior Manager Product Management DHL Resilience360, DHL Customer Solutions & Innovation.

Businesses have barely kept up with the development of today’s supply chains and are often vulnerable to risks through globalization and the fast changing regulatory environment. According to the Business Continuity Institute, half of all supply disruptions are caused by second tier suppliers or beyond.¹ Still, four out of five companies do not have a complete overview of their supply chain beyond direct providers.² This includes the exact whereabouts of lower tier suppliers, which companies they rely on and how these businesses operate.

DHL’s new Transparency Portal allows customers to gather the relevant data in order to better assess their vulnerability to natural disasters, regulatory issues, concentration risks or political upheavals. The fully customizable platform offers pre-defined survey templates to individually design information requirements, for example on business continuity management as well as attained certifications, including Customs Trade Partnership Against Terrorism (C-TPAT) licenses, as an example.

Business can then start collecting data from their first tier suppliers through the secure online tool, while the system automatically manages further iterations from subsequent supplier levels. Finally, the system also generates summary reports and allows users to seamlessly scan through their data to identify risk hot spots.

“The digital footprint captured when a customer ships with DHL can be used to uncover multi-tier supply networks,” explains Tobias Larsson, Head of Resilince360, DHL Customer Solutions & Innovation. “The DHL Resilience360 Transparency Portal gives organizations a simpler, faster and more effective way to collect the information they need to manage risks, ensure regulatory compliance and operate robust and resilient supply chains.”

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¹ Source: “Supply Chain Resilience Report”, Business Continuity Institute, 2015
² Source: “Global Manufacturing Outlook”, KPMG, 2016