Can diversifying transportation modes prevent disruptions.

Implementing effective techniques to deal with disruptions can assist shipping companies avoid unnecessary costs.

 

 

Having a robust supply chain strategy might make businesses more resilient to supply-chain disruptions. There are two main types of supply management problems: the very first has to do with the supplier side, specifically supplier selection, supplier relationship, supply planning, transportation and logistics. The second one deals with demand management issues. These are dilemmas related to product launch, manufacturer product line administration, demand preparation, product pricing and promotion preparation. Therefore, what typical techniques can companies use to improve their capacity to maintain their operations whenever a major disruption hits? According to a recent research, two techniques are increasingly showing to be effective when a interruption occurs. The first one is referred to as a flexible supply base, while the second one is known as economic supply incentives. Although a lot of in the industry would contend that sourcing from the single provider cuts expenses, it can cause dilemmas as demand varies or in the case of an interruption. Therefore, relying on numerous companies can offset the risk connected with sole sourcing. On the other hand, economic supply incentives work whenever buyer provides incentives to induce more manufacturers to enter the marketplace. The buyer will have more freedom in this way by moving production among suppliers, particularly in markets where there exists a limited amount of suppliers.

In order to avoid incurring costs, different companies start thinking about alternative roads. For instance, as a result of long delays at major international ports in certain African countries, some businesses encourage shippers to build up new routes along with traditional tracks. This strategy identifies and utilises other lesser-used ports. Instead of counting on just one major port, once the delivery company notice heavy traffic, they redirect products to more effective ports along the coastline then transport them inland via rail or road. According to maritime experts, this tactic has its own advantages not only in alleviating stress on overrun hubs, but also in the economic growth of appearing areas. Business leaders like AD Ports Group CEO would likely agree with this view.

In supply chain management, disruption inside a path of a given transport mode can considerably affect the entire supply chain and, often times, even bring it to a halt. As such, business leaders like P&O Ferries CEO and Maersk CEO work hard to add flexibility in the mode of transportation they depend on in a proactive manner. For instance, some companies utilise a flexible logistics strategy that hinges on numerous modes of transport. They encourage their logistic partners to mix up their mode of transport to incorporate all modes: trucks, trains, motorcycles, bicycles, ships as well as helicopters. Investing in multimodal transportation techniques like a mixture of rail, road and maritime transport and even considering different geographical entry points minimises the weaknesses and dangers connected with counting on one mode.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Comments on “Can diversifying transportation modes prevent disruptions.”

Leave a Reply

Gravatar