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From Safety to Sustainability: What 2020 Taught Us about Supply Chains

Introduction

Welcome to All Business No Boundaries, a collection of supply chain stories by DHL Supply Chain, the North American leader in contract logistics. This is a space for in-depth discussions on the supply chain challenges that keep you up at night. Today, we break beyond the boundaries that limit your supply chain. In this episode, we focus on the transition from safety to sustainability and what the year 2020 taught us about supply chains.

In this discussion, I am joined by Scott Seredin, CEO of DHL Supply Chain in North America. Scott provides insights into how DHL navigated the complexities of the pandemic and capitalized on unexpected challenges and trends.

Role and Scope of DHL Supply Chain

Scott begins by outlining his role as the leader of DHL Supply Chain in North America, which covers the United States and Canada. DHL Supply Chain is a global leader in contract logistics, providing integrated end-to-end supply chain solutions, including transportation and warehousing for various channels such as B2B, B2C, and e-commerce fulfillment. The company operates approximately 490 locations, employing around 6,000 full-time associates and utilizing around 140 million square feet of space.

Response to COVID-19

As the pandemic struck in early 2020, Scott highlights a two-pronged approach to managing the situation: strengthening workplace safety protocols and ensuring business continuity. This included implementing safety procedures, procuring personal protective equipment (PPE), establishing cleaning protocols, and managing social distancing among associates. Because of DHL's global footprint, the organization was able to leverage experiences and best practices from earlier outbreaks in Asia and Europe.

Volume Changes and Customer Collaboration

With the increase in e-commerce engagement and consumer goods demand, there was a significant surge in volume in some areas, while others, like the automotive sector, saw steep declines. Scott explains how the company adapted by reallocating labor from lower-performing sectors to those experiencing peak volumes. Remarkably, DHL did not have to conduct mass layoffs but instead hired additional associates to meet increased demands.

Scott notes that the pandemic accelerated long-standing trends such as the need for near-shoring and customers wanting to position their inventory closer to consumers. This shift led to businesses willing to carry more inventory than before to ensure quicker delivery times, recognizing the risks of relying solely on single distribution centers.

The importance of digitalization and automation was also emphasized, with DHL leveraging data to enhance predictive capabilities and introducing robotics to manage peaks in volume. The company's vast operations saw increased investments in automation that drove not only efficiency but also improved workplace dynamics.

Investment in Technology and Sustainability

As 2021 approaches, Scott discusses plans for continued investments in talent development, technology, and sustainability. Diversity and inclusion training is a priority, as is reinforcing a culture of learning among associates. The group aims to contribute positively to environmental initiatives, ensuring that sustainable solutions are woven into their operational practices.

Reflection on 2020

Concluding, Scott expresses pride in the essential role DHL played in supporting customers and communities during the pandemic. By adapting to unexpected challenges and shifting demands, the company delivered vital supplies, proving its resilience and commitment to service.

Keywords

  • Supply Chain
  • DHL Supply Chain
  • COVID-19
  • E-commerce
  • Automation
  • Digitalization
  • Workforce Safety
  • Near-shoring
  • Sustainability
  • Diversity and Inclusion

FAQ

What are the key challenges faced by supply chains in 2020?
The key challenges included workplace safety during the pandemic, managing volume shifts (increases in e-commerce and declines in sectors like automotive), and the need for improved data and inventory management.

How did DHL adapt during the pandemic?
DHL implemented safety protocols, adjusted labor allocation to meet increased demand in certain sectors, and accelerated automation and digitalization efforts to maintain efficiency.

What trends in supply chain management were accelerated by COVID-19?
Trends included near-shoring to bring products closer to consumers and an increased willingness by companies to carry more inventory to ensure quicker fulfillment.

What is DHL's focus for the future?
DHL plans to invest in talent development, continue enhancing automation and digitalization efforts, and prioritize sustainability initiatives.

Did DHL experience significant layoffs during the pandemic?
No, DHL did not have to conduct mass layoffs; instead, they hired additional associates to cope with the increased demand in e-commerce and consumer goods.

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