Multimodal transportation methods in supply chain management can offset dangers associated with counting on an individual mode.
Having a robust supply chain strategy might make companies more resilient to supply-chain disruptions. There are two main types of supply management problems: 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 issues associated with product introduction, product line management, demand planning, item rates and advertising planning. So, what common methods can businesses adopt to enhance their power to sustain their operations when a major interruption hits? In accordance with a recently available research, two techniques are increasingly appearing to be effective each time a interruption occurs. The first one is known as a flexible supply base, while the second one is known as economic supply incentives. Although many in the industry would contend that sourcing from a single provider cuts costs, it can cause dilemmas as demand varies or in the case of an interruption. Therefore, relying on numerous manufacturers can reduce the risk connected with single sourcing. On the other hand, economic supply incentives work whenever buyer provides incentives to induce more suppliers to enter the industry. The buyer will have more freedom in this way by shifting manufacturing among suppliers, specially in markets where there exists a limited amount of companies.
In order to avoid taking on costs, different companies consider alternate routes. As an example, due to long delays at major worldwide ports in some African states, some businesses urge shippers to build up new paths as well as traditional channels. This strategy detects and utilises other lesser-used ports. Instead of counting on just one major port, once the delivery company notice heavy 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 growth of appearing regions. 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 whole supply chain and, at times, even bring it to a halt. As such, business leaders like P&O Ferries CEO and Maersk CEO work hard to add flexibility within the mode of transport they rely on in a proactive way. As an example, some businesses utilise a versatile logistics strategy that relies on multiple modes of transportation. They urge their logistic partners to diversify their mode of transportation to include all modes: trucks, trains, motorcycles, bicycles, ships and even helicopters. Investing in multimodal transportation methods like a mixture of rail, road and maritime transport and even considering various geographic entry points minimises the vulnerabilities and dangers connected with counting on one mode.