Businesses that mix up their logistics and use alternative routes overcome many supply chain issues.
Having a robust supply chain strategy might make businesses more resilient to supply-chain disruptions. There are two main forms of supply management problems: the first has to do with the supplier side, namely supplier selection, supplier relationship, supply planning, transportation and logistics. The second one deals with demand management issues. These are issues associated with product introduction, product line management, demand planning, product pricing and promotion preparation. Therefore, what typical techniques can companies use to enhance their capability to maintain their operations when a major disruption hits? According to a recent research, two methods are increasingly showing to work whenever a disruption happens. The initial one is known as a flexible supply base, and the second one is called economic supply incentives. Although many in the industry would contend that sourcing from the single provider cuts expenses, it can cause problems as demand varies or when it comes to an interruption. Thus, relying on numerous companies can reduce the risk associated with single sourcing. On the other hand, economic supply incentives work when the buyer provides incentives to cause more companies to enter the marketplace. The buyer could have more freedom this way by moving production among suppliers, specially in markets where there is a small number of manufacturers.
In supply chain management, disruption within a path of a given transportation mode can somewhat affect the whole supply chain and, at times, even take it to a halt. As such, company leaders like P&O Ferries CEO and Maersk CEO work hard to add flexibility within the mode of transport they depend on in a proactive way. For example, some businesses utilise a flexible logistics strategy that utilises multiple modes of transport. They encourage their logistic partners to diversify their mode of transport to include all modes: trucks, trains, motorcycles, bicycles, vessels as well as helicopters. Investing in multimodal transport methods such as for instance a combination of train, road and maritime transportation and even considering various geographic entry points minimises the vulnerabilities and risks connected with depending on one mode.
To avoid taking on costs, different companies start thinking about alternative channels. As an example, due to long delays at major international ports in certain African states, some companies encourage shippers to develop new roads in addition to conventional channels. This plan identifies and utilises other lesser-used ports. In place of depending on a single major port, as soon as the shipping company notice heavy traffic, they redirect products to more effective ports over the coastline then transport them inland via rail or road. According to maritime experts, this strategy has many benefits not just in alleviating pressure on overwhelmed hubs, but additionally in the economic development of rising economies. Company leaders like AD Ports Group CEO would likely agree with this view.