DHL report shows how logistics firms can help improve semiconductor supply chain resiliency

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  • Chip shortages over the past few years underscore the critical role semiconductors play in the world and the importance of supply chain resilience
  • As semiconductor manufacturers expand manufacturing capacity to secure supply chains and meet growing demand for chips, logistics companies can play an active role in supporting this expansion
  • dhl identified four key approaches for companies to future-proof their supply chains: digitalisation, collaboration, resilient product and inventory strategies, and sustainability

In light of recent semiconductor shortages, dhl‘s report titled “Resilience in the Semiconductor Supply Chain” draws on interviews with business leaders from various industries to identify the key factors companies are adapting their semiconductor supply chains to be more resilient and flexible field. Four themes emerged: accelerated digitization, enhanced collaboration, robust product and inventory strategies, and sustainability. The report also highlights the opportunities for logistics providers to support companies in their efforts to increase the resilience of the semiconductor supply chain. By providing better supply chain visibility and data insights, logistics providers help their customers improve their inventory strategies and support their sustainability initiatives.

“Demand for semiconductors will continue to increase while the market environment is constantly changing. Therefore, the supply chain must remain stable and flexible at the same time to ensure the movement of goods globally. As the world’s largest logistics company, we in the supply chain to collect critical data, develop operational capabilities and monitor opportunities to improve resilience, reliability and sustainability. In this way, together with our customers, we can improve the resilience of semiconductor supply chains.” Technology, dhl Customer Solutions and Innovations Division President Alexander Gunde said.

Actively participate in the construction of new semiconductor factories

According to Deloitte, as supply chain disruptions cause global revenue losses of more than $500 billion in 2020 and 2021, companies in the semiconductor industry will double investment and spend $99 billion in 2022 to increase manufacturing capacity and meet growing demand. Demand. Concurrent fab construction projects in multiple geographies face numerous challenges in delivering products on time and on budget. For the semiconductor industry in particular, logistics companies can help with the complex orchestration of parallel deliveries, service of tools and capital equipment, and other machinery from multiple sources.

Future-proof your supply chain with four key approaches

Through interviews with supply chain leaders from various industries, dhl identified four key themes to help companies achieve their resilience goals:

Digitizing. Timely and detailed data on shipments, inventory, assets in transit, and suppliers enables fundamental visibility into the semiconductor supply chain and provides valuable insights. Data analytics increases operational efficiency and improves decision making. Logistics companies can help run analytics platforms to improve shipping visibility and warehouse operations to gain a holistic view of the supply chain.

Cooperation. Constrained transportation capacity and capital equipment availability in the semiconductor supply chain are best addressed with logistics providers. As these partnerships expand in scope, global integrated networks with centralized management are emerging and building resilience.

Robust product and inventory strategies. Targeted support is required for the shift to additional safety stock, more flexible fulfillment networks, and product line simplification in the semiconductor supply chain. Logistics providers can offer additional warehouse capacity, new forward stock locations, inventory data analytics, and more.

sustainability. Companies are focusing on minimizing their environmental impact while maximizing the resiliency of the semiconductor supply chain. Logistics providers can provide transport and warehousing emissions data, optimize routes, loads and transport modes, deploy sustainable technologies such as electric trucks and alternative fuels, and help develop closed-loop logistics and circular economy initiatives.


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