Multimodal transport methods in supply chain management can offset dangers associated with relying on an individual mode.

In supply chain management, disruption in just 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 depend on in a proactive manner. As an example, some companies utilise a versatile logistics strategy that hinges on multiple modes of transport. They encourage their logistic partners to diversify their mode of transport to include all modes: vehicles, trains, motorcycles, bicycles, ships and even helicopters. Investing in multimodal transport methods such as for instance a mixture of rail, road and maritime transportation and even considering various geographical entry points minimises the weaknesses and risks connected with depending on one mode.

In order to avoid incurring costs, different companies think about alternative roads. For instance, due to long delays at major international ports in certain African countries, some businesses encourage shippers to build up new tracks in addition to conventional routes. This tactic detects and utilises other lesser-used ports. As opposed to depending on a single major commercial port, when the shipping business 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 many benefits not merely in relieving pressure on overwhelmed hubs, but in addition in the financial development of rising markets. Company leaders like AD Ports Group CEO would probably trust this view.

Having a robust supply chain strategy could make companies more resilient to supply-chain disruptions. There are two main forms of supply management dilemmas: the first has to do with the supplier side, specifically supplier selection, supplier relationship, supply planning, transport and logistics. The next one deals with demand management dilemmas. They are dilemmas related to product introduction, product line management, demand planning, product prices and advertising preparation. Therefore, what typical methods can businesses adopt to boost their capacity to maintain their operations each time a major interruption hits? In accordance with a recently available research, two methods are increasingly proving to work each time a interruption takes place. The initial one is known as a flexible supply base, while the second one is known as economic supply incentives. Although a lot of in the market would argue that sourcing from a single provider cuts expenses, it may cause issues as demand fluctuates or in the case of a disruption. Hence, depending on numerous companies can reduce the risk related to sole sourcing. Having said that, economic supply incentives work whenever buyer provides incentives to cause more vendors to enter the market. The buyer will have more freedom in this way by shifting production among manufacturers, specially in markets where there is a small number of suppliers.