Companies that diversify their logistics and use alternative routes overcome many supply chain issues.
In order to avoid taking on costs, various businesses start thinking about alternative paths. As an example, as a result of long delays at major international ports in some African states, some companies recommend to shippers to develop new paths as well as conventional paths. This plan identifies and utilises other lesser-used ports. Rather than depending on an individual major port, when the shipping business notice heavy traffic, they redirect items to more efficient ports over the coast then transport them inland via rail or road. According to maritime experts, this plan has many advantages not only in relieving stress 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 companies more resilient to supply-chain disruptions. There are two main kinds of supply management problems: the very first has to do with the supplier side, specifically supplier selection, supplier relationship, supply preparation, transport and logistics. The second one deals with demand management problems. They are issues regarding product launch, product line management, demand preparation, item rates and promotion planning. Therefore, what typical methods can firms use to enhance their capacity to maintain their operations when a major disruption hits? Based on a recently available research, two strategies are increasingly appearing to work each time 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 a lot of on the market would contend that sourcing from the sole provider cuts expenses, it may cause dilemmas as demand fluctuates or in the case of a disruption. Thus, relying on multiple vendors can offset the danger related to single 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 this way by shifting production among suppliers, especially in areas where there exists a small amount of companies.
In supply chain management, disruption within a route of a given transportation mode can significantly impact the whole supply chain and, often 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 encourage their logistic partners to diversify their mode of transport to incorporate all modes: trucks, trains, motorcycles, bicycles, vessels and also helicopters. Investing in multimodal transportation methods such as for instance a mix of rail, road and maritime transportation as well as considering different geographic entry points minimises the vulnerabilities and risks connected with depending on one mode.