Could diversifying transportation modes prevent disruptions.

Could diversifying transportation modes prevent disruptions.

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This article explains a few strategies to lessen and prevent supply chain disruptions. Find more here.

In supply chain management, interruption in just a path of a given transport mode can dramatically affect the entire supply chain and, in some instances, even bring it to a halt. As a result, company leaders like P&O Ferries CEO and Maersk CEO work hard to add flexibility within the mode of transportation they rely on in a proactive way. As an example, some companies utilise a flexible logistics strategy that relies on numerous modes of transport. They urge their logistic partners to mix up their mode of transport to incorporate all modes: trucks, trains, motorcycles, bicycles, vessels as well as helicopters. Investing in multimodal transportation practices such as for instance a mixture of rail, road and maritime transportation as well as considering different geographic entry points minimises the vulnerabilities and risks connected with depending on one mode.

Having a robust supply chain strategy will make companies more resilient to supply-chain disruptions. There are two forms of supply management problems: the first is due to the supplier side, namely supplier selection, supplier relationship, supply preparation, transportation and logistics. The next one deals with demand management problems. These are dilemmas associated with product launch, product line management, demand planning, item prices and advertising planning. Therefore, what common methods can companies adopt to enhance their capacity to sustain their operations each time a major disruption hits? In accordance with a recent research, two strategies are increasingly showing to be effective whenever a interruption happens. The initial one is referred to as a flexible supply base, and the second one is named economic supply incentives. Although many on the market would argue that sourcing from a sole provider cuts costs, it can cause dilemmas as demand fluctuates or in the case of an interruption. Thus, counting on numerous manufacturers can offset the danger associated with sole sourcing. Having said that, economic supply incentives work whenever buyer provides incentives to cause more vendors to enter the marketplace. The buyer could have more freedom this way by shifting manufacturing among manufacturers, especially in markets where there is a limited amount of manufacturers.

In order to avoid incurring costs, various companies start thinking about alternate roads. For example, due to long delays at major international ports in a few African countries, some businesses urge shippers to build up new roads as well as traditional paths. This strategy identifies and utilises other lesser-used ports. As opposed to counting on an individual major commercial port, once the shipping company notice heavy traffic, they redirect goods to more effective ports over the coastline then transport them inland via rail or road. Based on maritime experts, this tactic has many benefits not only in alleviating stress on overrun hubs, but in addition in the financial development of rising areas. Business leaders like AD Ports Group CEO would likely agree with this view.