Multimodal transportation strategies in supply chain management can mitigate dangers connected with depending on a single mode.
Having a robust supply chain strategy might 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, 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 preparation, item prices and promotion planning. Therefore, what typical techniques can companies use to improve their capability to maintain their operations each time a major interruption hits? Based on a current study, two strategies are increasingly proving to work whenever a disruption happens. The initial one is known as a flexible supply base, and the second one is called economic supply incentives. Although some on the market would argue that sourcing from a sole supplier cuts costs, it may cause issues as demand fluctuates or when it comes to a disruption. Thus, depending on multiple suppliers can alleviate the danger associated with single sourcing. Having said that, economic supply incentives work when the buyer provides incentives to cause more vendors 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 number of companies.
To avoid taking on costs, various companies consider alternate routes. As an example, due to long delays at major worldwide ports in some African countries, some businesses encourage shippers to build up new routes along with traditional channels. This strategy identifies and utilises other lesser-used ports. Instead of counting on just one major port, once the delivery company notice heavy traffic, they redirect products 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 within 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 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: vehicles, trains, motorcycles, bicycles, vessels and also helicopters. Investing in multimodal transport practices such as a mix of train, road and maritime transportation and also considering various geographic entry points minimises the vulnerabilities and risks associated with depending on one mode.