Multimodal transportation techniques in supply chain management can offset dangers connected with relying on a single mode.
In order to avoid incurring costs, different companies consider alternate routes. For example, as a result of long delays at major international ports in certain African states, some companies urge shippers to develop new roads along with traditional channels. This strategy detects and utilises other lesser-used ports. As opposed to depending on an individual major commercial port, once the delivery company notice hefty traffic, they redirect goods to better ports across the coastline and then transport them inland via rail or road. In accordance with maritime experts, this strategy has its own advantages not just in relieving pressure on overwhelmed hubs, but in addition in the economic development of appearing 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 impact the entire supply chain and, in certain cases, even bring it to a halt. As such, company leaders like P&O Ferries CEO and Maersk CEO work hard to add flexibility into the mode of transportation they depend on in a proactive manner. As an example, some businesses utilise a flexible logistics strategy that depends on numerous modes of transport. They encourage their logistic partners to mix up their mode of transportation to include all modes: trucks, trains, motorcycles, bicycles, ships as well as helicopters. Investing in multimodal transportation techniques such as for instance a combination of rail, road and maritime transport and even considering different geographical entry points minimises the vulnerabilities and risks related to counting on one mode.
Having a robust supply chain strategy might make businesses more resilient to supply-chain disruptions. There are two main forms of supply management dilemmas: the very first is due to the supplier side, particularly supplier selection, supplier relationship, supply preparation, transport and logistics. The next one deals with demand management dilemmas. They are problems regarding product launch, manufacturer product line administration, demand planning, product pricing and promotion preparation. Therefore, what typical methods can companies use to enhance their capability to sustain their operations when a major interruption hits? In accordance with a recently available research, two techniques are increasingly appearing to be effective when a interruption takes place. The initial one is called a flexible supply base, and the second one is named economic supply incentives. Although some in the market would argue that sourcing from a sole provider cuts costs, it may cause dilemmas as demand fluctuates or in the case of an interruption. Hence, counting on multiple manufacturers can alleviate the danger associated with single sourcing. Having said that, economic supply incentives work when the buyer provides incentives to cause more companies to enter the marketplace. The buyer will have more freedom this way by moving production among suppliers, specially in markets where there exists a small number of companies.