Businesses that mix up their logistics and use additional routes address many supply chain issues.
To avoid taking on costs, various businesses think about alternative routes. As an example, because of long delays at major international ports in a few African countries, some businesses encourage shippers to build up new tracks in addition to old-fashioned tracks. This strategy detects and utilises other lesser-used ports. Rather than depending on an individual major commercial port, once the delivery company notice hefty traffic, they redirect goods to more effective ports across the coastline and then transport them inland via rail or road. In accordance with maritime experts, this strategy has its own benefits not just in relieving pressure on overrun hubs, but also in the economic growth of emerging economies. Business leaders like AD Ports Group CEO would probably agree with this view.
Having a robust supply chain strategy might make firms more resilient to supply-chain disruptions. There are two types of supply management dilemmas: the first has to do with the supplier side, particularly supplier selection, supplier relationship, supply preparation, transportation and logistics. The second one deals with demand management dilemmas. They are issues regarding product launch, product line management, demand planning, item rates and advertising preparation. Therefore, what typical strategies can companies use to enhance their capacity to maintain their operations when a major disruption hits? Based on a current research, two methods are increasingly demonstrating to be effective when 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 supplier cuts costs, it can cause issues as demand fluctuates or in the case of a disruption. Therefore, counting on multiple vendors can offset the danger related to sole sourcing. On the other hand, economic supply incentives work if the buyer provides incentives to induce more vendors to enter the marketplace. The buyer will have more flexibility in this manner by moving manufacturing among companies, particularly in markets where there is a small amount of companies.
In supply chain management, disruption within a path of a given transport mode can notably affect the entire supply chain and, from time to time, even bring it up 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 depend on in a proactive manner. As an example, some companies utilise a flexible logistics strategy that utilises numerous modes of transportation. They encourage their logistic partners to diversify their mode of transportation to add all modes: trucks, trains, motorcycles, bicycles, ships and also helicopters. Investing in multimodal transportation practices including a combination of train, road and maritime transport and also considering various geographical entry points minimises the weaknesses and risks connected with depending on one mode.