Companies that diversify their logistics and use alternative routes overcome many supply chain problems.
To avoid taking on costs, different companies consider alternate channels. For instance, due to long delays at major worldwide ports in a few African states, some companies recommend to shippers to build up new paths as well as conventional paths. This plan identifies and utilises other lesser-used ports. Rather than depending on an individual major commercial port, once the delivery company notice hefty traffic, they redirect products to more effective ports across the coastline and then transport them inland via rail or road. In accordance with maritime experts, this tactic has its own benefits not merely in alleviating stress on overrun hubs, but additionally in the financial development of growing regions. Company leaders like AD Ports Group CEO would probably agree with this view.
Having a robust supply chain strategy will make firms more resilient to supply-chain disruptions. There are two forms of supply management issues: the first is due to the supplier side, namely supplier selection, supplier relationship, supply planning, transport and logistics. The second one deals with demand management issues. They are dilemmas associated with product launch, manufacturer product line management, demand planning, item rates and promotion planning. So, what typical methods can firms use to enhance their capacity to sustain their operations when a major disruption hits? In accordance with a recently available study, two strategies are increasingly showing to work each time a interruption happens. The first one is called a flexible supply base, and the second one is known as economic supply incentives. Although many in the industry would argue that sourcing from a single supplier cuts costs, it can cause issues as demand varies or when it comes to an interruption. Hence, depending on numerous manufacturers can mitigate the risk associated with sole sourcing. On the other hand, economic supply incentives work when the buyer provides incentives to induce more suppliers to enter the market. The buyer will have more flexibility this way by moving manufacturing among manufacturers, specially in areas where there exists a limited number of vendors.
In supply chain management, disruption within a path of a given transport mode can somewhat influence the whole supply chain and, at times, even take it up to a halt. As such, business leaders like P&O Ferries CEO and Maersk CEO work hard to add flexibility in the mode of transport they rely on in a proactive manner. For example, some businesses utilise a versatile logistics strategy that depends on multiple modes of transport. They urge their logistic partners to diversify their mode of transport to incorporate all modes: trucks, trains, motorcycles, bicycles, vessels as well as helicopters. Investing in multimodal transportation methods such as for instance a mixture of rail, road and maritime transportation as well as considering different geographic entry points minimises the vulnerabilities and dangers related to depending on one mode.