We are in a place now where global supply disruptions have led to shortages of everything. Changes in customer buying patterns have exacerbated the pitfalls of particular supply chain risks. Ocean and air freight capacity has been hit by disturbances that emerged throughout the pandemic and an economic shift has occurred, filling logistic container systems beyond capacity.
This crisis that has clogged global supply chain channels implies that there are not enough ships, containers, drivers, or cranes to move cargo swiftly, and there is no marvel remedy to make those assets appear in a short space of time.
Yet, these circumstances should better the forthcoming trends of the global supply chain—where shippers undertake transformation needs to provide risk management options for future moderation, despite not making containers arrive at ports or make consumer orders arrive as quickly as they once did.
In this article, we go through the challenges that have halted progress in the global supply chain framework and discuss the 5 ways in which they can be surmounted.
Challenging times for global supply chains
Growth in eCommerce driving multi-modal transportation has been advancing, as more transit modes are needed to meet demand. There has also been an extended focus on the supply chain function within organizations, leading to integrated operations from shippers to suppliers.
The hurdles of operating global supply chain networks must be overcome, and multi-modal transportation will often need to be leveraged to help organizations remain competitive. In order to replenish fulfillment centers for last-mile deliveries, the blend of road, rail, and sea can provide shorter lead times than a single mode of transport. Hence, visibility across multi-modal transportation legs is also needed.
Designing future supply chains with resilience
Achieving visibility across a multimodal network within your supply chain transport operations is no easy task. But the vulnerabilities have now been laid bare, many of which came from processes that were engineered fundamentally for cost and speed. These supply chain models were not flexible enough to detect and quickly respond to volatile changes in supply and demand, thus leaving decision-makers on the back foot and unable to adapt as conditions changed daily.
One of the key strategies to implement and overcome this issue is ensuring high-quality data is integrated with shipper transport management systems (TMS). It provides contextual data to be obtained linking to each shipment, enhancing the performance and reliability of ETAs.
By gathering real-time information on multimodal transportation flows, fluid data transfers between all stakeholders in the chain provide secure access and a source for collecting real-time data.
Customer centricity has a role to play
The backlash that followed from consumers who were dissatisfied with delays and order cancelations hit home during recent years, with many realizing that customer-centricity was not about second-guessing customers’ needs. As supply chain management means getting products to the correct place at the precise time for the right cost to satisfy consumer demands, these changes to a supply chain expedition process will positively impact meeting customer needs.
The difficulties of managing global supply chain networks and embracing multi-modal transportation are integral to future supply chains. Companies have to ensure that their real-world supply chain can begin to offer the kind of experience that their clients and consumers want.