How to workaround a volatile global supply chain?

02/01/2022
As the Corona pandemic has shown how vulnerable the global supply chain is in 2021; it's time for any suppliers to step up their games !
How to manage an unpredictable supply chain?
How to manage an unpredictable supply chain?
In this modern world, time is very precious and that's why customers dont like seeing their time wasted in a very unstable and unpredictable global supply chain. As economies around the world are re-opening, the supply chain around the world still suffer from delay and congestion. The customers want their goods delivered to them in time, but logistics teams can’t make any promises.

There was little appreciation for just how fragile the system was pre-COVID-19. Delays happened, but because goods largely arrived in time, if not on time, flaws went unseen. Today, we’re grappling with an unpredictable situation. It’s not just that goods are moving slower; there’s no way to know just how slow they’ll be. There’s a shortage of shipping containers, ships, trucks, trains and particularly of drivers. At the same time, the trend toward larger ships means fewer ports can accommodate them, so ports get backed up more easily. If one ship is delayed, it interrupts the progress of far more goods, and larger shipments need more rail and road services, raising the risk of congestion. The rise in extreme weather conditions is also forcing ports and railroad terminals to close intermittently.
 
Change in any one of these variables means delays, possibly in conditions that you and your customers didn’t anticipate. However, there are ways you can help lower stress, minimize damage and deliver positive service.
 
There are many ways to improve your logistics and delivery
Improve visibility into shipment progress. Enable businesses to find ways to deal with delays and rerouting, by offering real-time visibility into shipment progress on both a micro and a macro level. On a micro level, customers need to know exactly where each individual shipment is located at any given moment, so they can change the route or shipping method when needed, and update their end customers accordingly. On the macro level, you need to share insight into the ebb and flow of goods across the system, so you can optimize the supply chain; choose the best shipping method, routes and contractors, and keep updating those choices. Doing so requires not just low-latency location data, but also advanced analytics which can gather and crunch information swiftly.
 

Optimize shipping routes. Air routes are becoming more competitive than earlier in the pandemic, making them a viable alternative at times to clogged marine or road lines.

To help customers fulfill their promises, logistics teams need the flexibility and agility to mix and match air freight, marine shipping and road freight, even once shipments have already set out on their journey. This in turn requires trustworthy data logging options that can cope with changing transportation methods. Today's solutions don’t need wired connections or expensive hardware, hold up under all temperatures and conditions, and can follow the shipment wherever and however it travels.

Offer transparency into shipment conditions. When you’re in a volatile shipping situation, it’s crucial to share real time information not just about where the shipment is located, when it’s expected and what’s causing the delay, but also the condition of the items.

Longer shipping times and an increased likelihood of delays, rerouting and changes in shipping methods means increased need for full knowledge about shipment conditions, including humidity, tilt, jostling, temperature and shocks. Customers need to know if items are close to expiration, or in temperatures that exceed recommended parameters. Quality assurance demands full visibility, especially for sensitive items like food, pharmaceutical products and electronics.

Conclusion: Businesses around the world are struggling to cope with the fallout of the broken supply chain. Logistics companies can’t heal the wounds, but by offering better visibility, optimizing shipping routes and pooling capacity, they can help lessen the pain for their customers.

Source: www.supplychainbrain.com

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