Supply Chain Managament

Disruptions in global supply chains affect the world economy. With quite severe consequences, as those disruptions can quickly lead to delays or even failure in the delivery of goods or services. To ensure that the complex logistics processes function as smoothly as possible even in times of crisis, effective collaboration between all supply chain partners and the intensive exchange of all relevant information have become indispensable. In our latest blog post, we explain the key benefits that collaborative work has for companies, the technologies that support them and the obstacles that those involved must face in order to successfully establish and build a transparent, resilient and efficient supply chain.

After three turbulent years, global supply chains have eased considerably – freight rates are falling and the flow of goods is more reliable again. Nevertheless, companies will continue to face challenges in 2023 that need to be mastered strategically. Resilience, agility and transparency remain important goals. So will reconciling cost efficiency, performance, security and sustainability. We discuss six trends to show which strategies are gaining importance in procurement, what is fueling their implementation, and what synergies digital solutions promise.

Where do German companies stand in the digital transformation of their supply chains? Which technologies are already being increasingly used and what are the main drivers? Also – what are the obstacles that logistics managers are facing on their way to the logistics of the future? The comprehensive online study "Digitalization of Supply Chains" conducted by the German Association of Materials Management, Purchasing and Logistics (BME) and Fulda University of Applied Sciences, provides valuable information on this topic.
We have summarized the most important findings.

The success of trading and manufacturing companies is strongly tied to the fact that the quality and reliability of supply of products, preliminary products or raw materials is always guaranteed. Selecting the right suppliers is all about efficiency and cost-effectiveness, yet sustainability and reputation must also be considered. Companies that rely on supplier assessment according to ISO 9001 have an advantage – they benefit in terms of management and optimization of their supply chain. For example, the implementation of the Supply Chain Act, which has been in force since January 1st, can be firmly based on a systematic assessment of suppliers. We explain the added value that is associated with the certification and discuss which criteria are relevant.

Collaboration and data exchange within the supply chain is a decisive factor for German companies that aim to increase the efficiency of procurement processes. This view is held by two-thirds of the total of 150 logistics and supply chain managers surveyed for the 17th Hermes-Barometer on "Collaboration in the Supply Chain". Factors that promise a better overview within the supply chain, a higher degree of efficiency and more precise coordination of processes are rated as particularly critical to success. However, when it comes to implementation, companies face technological and personnel obstacles. Our recent blog post provides a detailed insight into the results of the survey.

The global pandemic, severe weather events or new legislations such as the Supply Chain Act – in the face of continuing risks and rising demands, companies in the manufacturing sector are increasingly looking for approaches to optimize their supply chains. 3D printing processes, also known as additive manufacturing, have paved the way to new opportunities that are aimed to make supply chains more cost-efficient and sustainable, whilst keeping the risks low at the same time. We explain how the innovative manufacturing technology can be applied and discuss the benefits that it offers.

Change of leadership at Hermes International: After more than a decade, Stephan Schiller, former Managing Director of Hermes Europe GmbH and CEO of Hermes International, is taking on a new role at his own request.. In this challenging time for logistics and supply chain management, he is handing over to Henning Udo Goldmann, who has already been with the company as an expert on digitalization topics. We spoke with the previous and the new managing director about the development of the logistics industry, current requirements, shared values and how Hermes International will accompany its customers into a future characterized by transformations.

Digitization can make a decisive contribution when it comes to achieving Germany’s climate targets by 2030. This was the conclusion of a study conducted by Accenture for the digital association Bitkom, which examined the influence of various digital technologies on the net savings potential of CO2 emissions using case studies in seven sectors of the economy. Accordingly, the areas of industrial manufacturing and mobility offer the greatest reduction potential. Following the results of the study, a decisive lever can be the optimization of routing and freight management.

With the increasing challenges in global procurement, many companies feel the growing need to secure their supply chain: If, for example, a supplier solely responsible for certain materials or resources were to fail, this would have serious consequences for production. Diversifying the supply chain through dual or multiple sourcing strategies is an effective means of strengthening resilience and reducing procurement risks. However, an increasing number of suppliers can also result in increased costs and more complex management processes. We compare the advantages and disadvantages of dual and multiple sourcing with the single sourcing concept and explain in which context which alternative is most prone to success.

For more than two years, global developments have been continuously defining new requirements for the organization of goods movements. Procurement and logistics are faced with the task of developing new solutions for current and future challenges. Stephan Schiller, CEO at Hermes International, a business unit of Hermes Germany, explains which steps have now become necessary, why collaboration matters and what the supply chain management of the future should look like.