Companies that diversify their logistics and use alternative routes overcome many supply chain issues.
In order to avoid incurring costs, different companies consider alternate tracks. For example, as a result of long delays at major worldwide ports in some African states, some companies recommend to shippers to develop new roads along with traditional roads. This tactic detects and utilises other lesser-used ports. As opposed to relying on an individual major port, once the delivery company notice hefty traffic, they redirect goods to better ports over the coast then transport them inland via rail or road. According to maritime experts, this tactic has its own benefits not just in relieving pressure on overrun hubs, but in addition in the economic growth of emerging areas. Company leaders like AD Ports Group CEO would probably agree with this view.
In supply chain management, disruption inside a path of a given transportation mode can notably influence 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 depend on in a proactive manner. For instance, some businesses utilise a versatile logistics strategy that relies on multiple modes of transportation. They urge their logistic partners to diversify their mode of transport to add all modes: vehicles, trains, motorcycles, bicycles, vessels and also helicopters. Investing in multimodal transportation methods like a mixture of train, road and maritime transportation and even considering different geographical entry points minimises the vulnerabilities and risks related to depending on one mode.
Having a robust supply chain strategy might make companies more resilient to supply-chain disruptions. There are two main types of supply management problems: 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 problems. These are issues associated with product introduction, product line management, demand preparation, item rates and advertising planning. So, what common strategies can businesses adopt to boost their power to sustain their operations when a major disruption hits? In accordance with a recently available research, two techniques are increasingly appearing to be effective when a interruption occurs. The first one is referred to as a flexible supply base, while the second one is named economic supply incentives. Although some in the market would argue that sourcing from a sole supplier cuts costs, it may cause issues as demand fluctuates or when it comes to an interruption. Therefore, relying on numerous companies can offset the risk connected with single sourcing. On the other hand, economic supply incentives work whenever buyer provides incentives to induce more suppliers to enter the industry. The buyer could have more flexibility in this manner by shifting manufacturing among companies, especially in areas where there is a small number of suppliers.