DHL Global Forwarding Advocates for ‘China Plus X’ Strategy to Strengthen Global Supply Chains

DHL Global Forwarding Advocates for ‘China Plus X’ Strategy to Strengthen Global Supply Chains

(IN BRIEF) DHL Global Forwarding’s latest white paper emphasizes the importance of adopting multi-shoring strategies, expanding beyond the traditional “China Plus 1” model to include several global regions. The “China Plus X” approach aims to diversify production and supplier locations, reducing risks and enhancing operational flexibility in response to global disruptions such as geopolitical tensions and the COVID-19 pandemic. The paper identifies countries in Southeast Asia, Eastern and Southern Europe, and South America as emerging alternatives to China. Key criteria for selecting these locations include strong infrastructure, cost-effectiveness, skilled labor, and favorable regulatory environments. DHL also offers multimodal transportation solutions and consulting services to help companies implement their “Plus X” strategies effectively. Innovative technologies like myDHLi enhance supply chain transparency and efficiency, positioning DHL as a critical partner in supply chain diversification.

(PRESS RELEASE) BONN, 12-Feb-2025 — /EuropaWire/ — DHL Global Forwarding has released a white paper that delves into the growing need for multi-shoring strategies, emphasizing a shift beyond the traditional “China Plus 1” approach. The paper advocates for diversifying production and supplier locations across multiple countries to reduce supply chain risks and enhance operational flexibility. This approach, known as the “China Plus X” strategy, aims to shield companies from global disruptions and improve their resilience.

As geopolitical tensions, trade barriers, and events like the COVID-19 pandemic have exposed the vulnerability of supply chains, the white paper highlights various alternative countries in Southeast Asia, Southern and Eastern Europe, as well as the Middle East and South America. These regions are emerging as strategic alternatives to China due to significant infrastructural investments and increasingly trade-friendly regulations.

Niki Frank, CEO of DHL Global Forwarding Asia Pacific, remarked, “The future of global supply chains lies in a flexible, sustainable and diversified structure designed for resilience. DHL Global Forwarding supports companies with a unique global network and local expertise to successfully shape this transformation.”

The white paper also outlines five key criteria for selecting suitable production and supply chain locations. These include robust transportation infrastructure, favorable cost structures, quality of digital and physical infrastructure, availability of skilled labor, and a favorable regulatory environment. Countries like Vietnam and Mexico are investing heavily in their infrastructure, while India is preparing its workforce for emerging industries like semiconductors. These factors, coupled with favorable trade agreements, make these locations ideal for businesses looking to diversify their operations.

Additionally, DHL Global Forwarding provides a wide array of services, including multimodal transportation solutions and specialized consulting. The company’s ability to use innovative technologies, such as the myDHLi platform, ensures real-time insights and improved supply chain transparency, making it an invaluable partner for companies looking to diversify their supply chains and prepare for the future.

DHL – The logistics company for the world

DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 395,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as “The logistics company for the world”.

DHL is part of DHL Group. The Group generated revenues of more than 81.8 billion euros in 2023. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. DHL Group aims to achieve net-zero emissions logistics by 2050.

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SOURCE: DHL Group