Businesses that mix up their logistics and use additional routes overcome many supply chain problems.
Having a robust supply chain strategy will 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, 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 planning, product pricing and advertising preparation. Therefore, what common strategies can firms use to enhance their power to sustain their operations when a major interruption hits? In accordance with a recently available study, two strategies are increasingly proving to work whenever a disruption happens. The initial one is called a flexible supply base, and the second one is called economic supply incentives. Although some in the market would argue that sourcing from the sole supplier cuts expenses, it can cause problems as demand varies or when it comes to an interruption. Therefore, relying on numerous vendors can decrease the danger related to sole sourcing. Having said that, economic supply incentives work when the buyer provides incentives to cause more companies to enter the market. The buyer could have more flexibility in this manner by shifting manufacturing among companies, especially in areas where there is a small amount of companies.
To avoid incurring costs, different businesses give consideration to alternate tracks. For example, because of long delays at major international ports in a few African states, some companies urge shippers to develop new tracks in addition to conventional routes. This tactic detects and utilises other lesser-used ports. Rather than depending on a single major port, when the shipping company notice hefty traffic, they redirect items to more efficient ports across 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 development of growing regions. Business leaders like AD Ports Group CEO would probably agree with this view.
In supply chain management, disruption inside a route of a given transport mode can somewhat impact the entire supply chain and, in some instances, even take it up to a halt. As a result, 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. For example, some companies utilise a flexible logistics strategy that relies on multiple modes of transportation. They urge their logistic partners to diversify their mode of transportation to include all modes: vehicles, trains, motorcycles, bicycles, vessels and also helicopters. Investing in multimodal transport practices such as for instance a mix of train, road and maritime transportation and also considering various geographical entry points minimises the vulnerabilities and risks associated with depending on one mode.