This article describes a few strategies to lessen and prevent supply chain disruptions. Find more here.
To avoid taking on costs, different companies think about alternate paths. For example, as a result of long delays at major international ports in certain African countries, some companies encourage shippers to build up new tracks in addition to conventional paths. This plan identifies and utilises other lesser-used ports. Rather than depending on an individual major commercial port, as soon as the delivery company notice hefty traffic, they redirect goods to better ports along the coast and then transport them inland via rail or road. Based on maritime experts, this strategy has many advantages not only in relieving stress 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.
Having a robust supply chain strategy might make businesses more resilient to supply-chain disruptions. There are two types of supply management dilemmas: the first has to do with the supplier side, particularly supplier selection, supplier relationship, supply planning, transportation and logistics. The next one deals with demand management dilemmas. These are issues regarding product launch, product line management, demand preparation, item rates and promotion planning. So, what typical strategies can firms use to enhance their capacity to maintain their operations when a major disruption hits? Based on a current research, two methods are increasingly proving to be effective whenever a disruption occurs. The initial one is known as a flexible supply base, while the second one is named economic supply incentives. Although some in the industry would argue that sourcing from a single provider cuts expenses, it may cause dilemmas as demand varies or when it comes to an interruption. Hence, relying on numerous suppliers can decrease the risk associated with sole sourcing. On the other hand, economic supply incentives work when the buyer provides incentives to cause more manufacturers to enter the industry. The buyer could have more freedom in this way by shifting production among vendors, especially in areas where there exists a small number of vendors.
In supply chain management, disruption in just a path of a given transport mode can notably affect the entire supply chain and, from time to time, even bring 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 depend on in a proactive manner. As an example, some businesses utilise a flexible logistics strategy that relies on numerous modes of transportation. They urge their logistic partners to mix up their mode of transportation to include all modes: vehicles, trains, motorcycles, bicycles, ships and also helicopters. Investing in multimodal transport methods like a combination of train, road and maritime transport and also considering various geographical entry points minimises the weaknesses and risks connected with depending on one mode.