A DHL survey of 350 individuals found that 42% want fewer supply chains and 32% operate more than 10 discrete supply chains.

Most supply chains are organized around geography, product, corporate unit and customer segment.

Source: Research report, “Plug-and-Play Supply Chain,” DHL Supply Chain

TO READ THE RESEARCH REPORT IN FULL PLEASE VISIT DHL.COM/PLUGANDPLAY/INTRO

TRADITIONAL SEGMENTATION

WHAT IS PLUG-AND-PLAY?

STEP ONE: SMART SEGMENTATION

IT’S ABOUT GENERATING AND PROTECTING PROFIT

THE PLUG-AND-PLAY SUPPLY CHAIN:BEYOND EFFICIENCY TO GROWTH

Advances in data analytics and visibility mean that organizations can now create finely-tuned, agile supply chains – the plug-and-play approach…

MANY ORGANIZATIONS HAVE A COMPLEX, UNSUSTAINABLE WEB OF ONE-OFF SUPPLY CHAINS

Product

57.2%

Geography

66.0%

Customer segment

39.7%

Corporate units/divisions

45.3%

Cost to serve

24.7%

Resilience/ flexibility/

responsiveness

19.0%

Strategic agenda/ growth

24.4%

Other

3.1%

The plug-and-play supply chain consists of core, standardized easily replicable solutions, augmented by standardized, process-proven bolt-ons tailored to unique segment or market needs.

Plug-and-play supply chains are based on segmentation that is driven by factors such as customer and product profitability, market/geography requirements, and service parameters.

This approach provides the information needed to raise the overall profitability of the portfolio while providing reliable service.

Core solutions should satisfy 70-80% of the requirements in a market segment. 80%

up to

THE RESULT? REALIZED VALUE

Organizations surveyed were clear on the value they would expect to realize from fully implementing a plug-and-play supply chain.

Source: Research report, “Plug-and-Play Supply Chain,” DHL Supply Chain

Improve quality

59.0%

Increase flexibility/ resilience/agility

77.5%

Reduce cost

87.2%

Greater efficiency

89.2%

Drive/support growth

51.0%

Serve geographies

more effectively

51.0%

Other

2.8%

STEP TWO: RELIABLE, STANDARDIZED COMPONENTS

Once the supply chain is segmented, the next step is to standardize across people, process and technology.

Repeatable components and solutions that intelligently adapt to changing conditions.

“Plug-and-play is designed to bring order to the web of complex and overlapping or under-developed supply chains most companies operate. But more than bringing order, this strategy creates the platform for more profitable growth.” Richard Sharpe, CEO of Competitive Insights

It’s high cost and full of waste. It lacks agility and exposes quality gaps and performance failures leaving it vulnerable to the competition.