This informative article explains a few strategies to lessen and steer clear of supply chain disruptions. Find more here.
In order to avoid incurring costs, different businesses give consideration to alternative roads. For instance, due to long delays at major worldwide ports in a few African countries, some businesses recommend to shippers to develop new routes as well as conventional routes. This plan identifies and utilises other lesser-used ports. Instead of counting on a single major commercial port, as soon as the delivery company notice hefty traffic, they redirect goods to better ports along the coastline then transport them inland via rail or road. Based on maritime experts, this plan has many advantages not only in relieving pressure on overwhelmed hubs, but in addition in the economic growth of emerging economies. Business leaders like AD Ports Group CEO would likely accept this view.
Having a robust supply chain strategy will make firms more resilient to supply-chain disruptions. There are two forms of supply management problems: the very first is due to the supplier side, namely supplier selection, supplier relationship, supply preparation, transport and logistics. The second one deals with demand management issues. They are dilemmas related to product introduction, manufacturer product line administration, demand planning, product prices and advertising planning. So, what common techniques can businesses adopt to improve their power to sustain their operations whenever a major interruption hits? According to a recent study, two techniques are increasingly showing to work each time a disruption happens. The first one is called a flexible supply base, and the second one is known as economic supply incentives. Although a lot of in the market would contend that sourcing from the sole provider cuts expenses, it may cause issues as demand varies or when it comes to an interruption. Hence, depending on numerous manufacturers can mitigate the danger associated with single sourcing. Having said that, economic supply incentives work whenever buyer provides incentives to cause more manufacturers to enter the industry. The buyer could have more freedom in this way by shifting production among vendors, especially in markets where there exists a small amount of companies.
In supply chain management, disruption within a route of a given transport mode can somewhat influence the whole 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 in the mode of transportation they rely on in a proactive way. For example, some companies utilise a versatile logistics strategy that hinges on multiple modes of transport. They encourage 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 practices including a mixture of train, road and maritime transportation and even considering various geographical entry points minimises the vulnerabilities and dangers associated with counting on one mode.