DHL highlights risk within technology sector at annual global conference in Shanghai

Supply chain

Competition within the technology sector is becoming more intense and Asia’s importance as both a manufacturing location and a consumer market is growing.

Both of these changes promise to amplify the role of logistics as a competitive differentiator in the technology industry.

These are the key trends identified by logistics provider DHL which the company this week revealed at its third annual global technology conference in Shanghai, China.

“More than any other industry, the technology sector is driven by constant innovation, short product cycles and new sales channels,” said Ken Allen, CEO DHL Express and Executive Board Sponsor for the Technology sector.

“From a logistics perspective this is a great challenge, but it also provides forward-thinking logistics companies with an opportunity to embed themselves more fundamentally in the technology supply chain and generate even more value for customers.

“To keep up with the rapid changes within this dynamic industry, we are working together closely with our customers and partners to develop new solutions.”

DHL estimates that 60% of all IT hardware growth will come from tablets and smartphones this year.

Both devices also elevate a trend towards high innovation cycles, which demands logistics providers improve time to market while supporting competitive price positioning.

An overall trend towards simplified and lighter products, combined with price pressure, is challenging manufacturers, their suppliers, and sometimes even their competitors to develop collaborative solutions that improve the cost efficiency of the technology supply chain.

This trend has seen an increase in the use of shared logistics platforms such as multi-user warehouses.