Multimodal transportation techniques in supply chain management can offset dangers connected with relying on an individual mode.
In supply chain management, interruption inside a route of a given transportation mode can significantly influence the whole supply chain and, in certain cases, even bring it to a halt. As a result, business leaders like P&O Ferries CEO and Maersk CEO work hard to add flexibility in the mode of transport they rely on in a proactive manner. As an example, some businesses utilise a flexible logistics strategy that utilises numerous modes of transportation. They encourage their logistic partners to diversify their mode of transportation to add all modes: trucks, trains, motorcycles, bicycles, vessels as well as helicopters. Investing in multimodal transportation practices including a combination of train, road and maritime transport and also considering different geographic entry points minimises the weaknesses and dangers related to depending on one mode.
In order to avoid incurring costs, different companies think about alternative tracks. For example, as a result of long delays at major international ports in some African countries, some businesses encourage shippers to build up new paths as well as conventional routes. This tactic detects and utilises other lesser-used ports. Instead of counting on a single major port, as soon as the shipping business notice hefty traffic, they redirect products to better ports across the coastline and then transport them inland via rail or road. According to maritime experts, this plan has many benefits not merely in alleviating stress on overwhelmed hubs, but in addition in the economic growth of appearing areas. Company leaders like AD Ports Group CEO may likely trust this view.
Having a robust supply chain strategy could make companies more resilient to supply-chain disruptions. There are two types of supply management problems: the first has to do with the supplier side, namely supplier selection, supplier relationship, supply planning, transportation and logistics. The second one deals with demand management problems. They are dilemmas related to product introduction, product line administration, demand preparation, item rates and advertising preparation. Therefore, what typical strategies can firms use to improve their capability to sustain their operations whenever a major disruption hits? Based on a current research, two techniques are increasingly showing to work whenever a interruption occurs. The first one is called a flexible supply base, and the second one is known as economic supply incentives. Although a lot of in the market would argue that sourcing from a single supplier cuts expenses, it may cause issues as demand varies or in the case of a disruption. Thus, relying on numerous manufacturers can mitigate the danger connected with sole sourcing. On the other hand, economic supply incentives work if the buyer provides incentives to induce more companies to enter the marketplace. The buyer could have more freedom this way by shifting production among suppliers, specially in areas where there is a limited amount of companies.