This informative article explains a few strategies to lessen and prevent supply chain disruptions. Find more here.
In order to avoid taking on costs, various companies think about alternate tracks. For example, as a result of long delays at major worldwide ports in some African states, some businesses encourage shippers to build up new channels along with traditional channels. This tactic identifies and utilises other lesser-used ports. In the place of counting on a single major commercial port, as soon as the delivery company notice hefty traffic, they redirect products to more effective ports across the coast and then transport them inland via rail or road. According to maritime experts, this tactic has many advantages not only in relieving stress on overwhelmed hubs, but in addition in the economic growth of rising markets. Business leaders like AD Ports Group CEO may likely agree with this view.
Having a robust supply chain strategy might make firms more resilient to supply-chain disruptions. There are two forms of supply management issues: the very first is due to the supplier side, specifically supplier selection, supplier relationship, supply preparation, transportation and logistics. The second one deals with demand management dilemmas. These are problems linked to product introduction, manufacturer product line management, demand planning, item rates and promotion planning. Therefore, what typical strategies can companies adopt to boost their capability to sustain their operations each time a major interruption hits? According to a current research, two methods are increasingly proving to be effective whenever a interruption takes place. The first one is referred to as a flexible supply base, and the second one is known as economic supply incentives. Although some in the industry would argue that sourcing from a single supplier cuts costs, it may cause dilemmas as demand varies or when it comes to a disruption. Thus, relying on multiple companies can alleviate the risk associated with sole sourcing. On the other hand, economic supply incentives work when the buyer provides incentives to induce more companies to enter the industry. The buyer could have more freedom in this manner by moving manufacturing among manufacturers, specially in areas where there exists a small amount of suppliers.
In supply chain management, disruption within a route of a given transportation mode can dramatically affect the entire supply chain and, in certain cases, even take it to a halt. As such, business leaders like P&O Ferries CEO and Maersk CEO work hard to add flexibility into the mode of transport they rely on in a proactive manner. For example, some companies utilise a versatile logistics strategy that hinges on multiple modes of transportation. They encourage their logistic partners to mix up their mode of transportation to include all modes: vehicles, trains, motorcycles, bicycles, vessels as well as helicopters. Investing in multimodal transportation practices including a mixture of rail, road and maritime transport and even considering various geographical entry points minimises the vulnerabilities and dangers related to depending on one mode.