Multimodal transport methods in supply chain management can offset dangers associated with relying on an individual mode.
In order to avoid incurring costs, different companies think about alternative routes. As an example, due to long delays at major worldwide ports in some African states, some companies recommend to shippers to develop new channels in addition to old-fashioned tracks. This plan identifies and utilises other lesser-used ports. Instead of counting on just one major port, when the shipping company notice hefty traffic, they redirect goods to better ports over the coast and then transport them inland via rail or road. In accordance with maritime experts, this strategy has its own advantages not only in alleviating stress on overrun hubs, but also in the financial growth of emerging economies. Company leaders like AD Ports Group CEO may likely trust this view.
In supply chain management, disruption inside a path of a given transport mode can significantly affect the whole supply chain and, at times, even bring 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 transport they rely on in a proactive manner. For example, some companies utilise a flexible logistics strategy that hinges on numerous modes of transport. They encourage their logistic partners to mix up their mode of transport to add all modes: vehicles, trains, motorcycles, bicycles, vessels and even helicopters. Investing in multimodal transportation methods like a mixture of rail, road and maritime transport as well as considering different geographical entry points minimises the vulnerabilities and risks associated with depending on one mode.
Having a robust supply chain strategy could make firms more resilient to supply-chain disruptions. There are two kinds of supply management issues: the very first has to do with the supplier side, specifically supplier selection, supplier relationship, supply planning, transportation and logistics. The second one deals with demand management dilemmas. They are dilemmas linked to product launch, product line management, demand planning, item rates and advertising planning. So, what typical methods can companies use to improve their capacity to maintain their operations whenever a major disruption hits? According to a recently available research, two techniques are increasingly appearing to be effective each time a interruption 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 single supplier cuts expenses, it can cause problems as demand varies or in the case of an interruption. Therefore, counting on multiple manufacturers can reduce the risk connected with sole sourcing. On the other hand, economic supply incentives work whenever buyer provides incentives to induce more manufacturers to enter the marketplace. The buyer will have more freedom this way by moving production among manufacturers, particularly in areas where there is a small number of manufacturers.