Multimodal transportation techniques in supply chain management can offset dangers connected with relying on a single mode.
In supply chain management, disruption within a path of a given transport mode can somewhat influence the whole supply chain and, in certain cases, even take 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 way. As an example, some companies utilise a flexible logistics strategy that relies on numerous modes of transport. They urge their logistic partners to diversify their mode of transport to incorporate all modes: trucks, trains, motorcycles, bicycles, vessels as well as helicopters. Investing in multimodal transportation methods such as for instance a mixture of rail, road and maritime transportation as well as considering different geographic entry points minimises the vulnerabilities and dangers related to depending on one mode.
Having a robust supply chain strategy will make companies more resilient to supply-chain disruptions. There are two forms of supply management issues: the very first has to do with the supplier side, namely supplier selection, supplier relationship, supply preparation, transportation and logistics. The next one deals with demand management issues. They are issues linked to product introduction, product line management, demand preparation, product rates and promotion preparation. So, what typical strategies can companies adopt to enhance their capacity to sustain their operations each time a major disruption hits? In accordance with a recent research, two strategies are increasingly showing to work whenever a interruption happens. The first one is known as a flexible supply base, and the second one is known as economic supply incentives. Although some in the market would contend that sourcing from a single provider cuts expenses, it can cause issues as demand varies or when it comes to a disruption. Therefore, depending on multiple companies can alleviate the risk related to single sourcing. Having said that, economic supply incentives work when the buyer provides incentives to induce more companies to enter the market. The buyer will have more flexibility in this way by moving manufacturing among suppliers, especially in markets where there exists a small amount of manufacturers.
In order to avoid incurring costs, various companies give consideration to alternate channels. As an example, due to long delays at major international ports in some African countries, some companies encourage shippers to develop new tracks along with conventional channels. This plan detects and utilises other lesser-used ports. Instead of relying on a single major commercial port, when the delivery business notice hefty traffic, they redirect products to better ports across the coast and then transport them inland via rail or road. According to maritime experts, this strategy has its own advantages not just in alleviating pressure on overwhelmed hubs, but in addition in the financial growth of growing areas. Business leaders like AD Ports Group CEO would likely agree with this view.