Multimodal transport strategies in supply chain management can mitigate risks related to depending on just one mode.

Having a robust supply chain strategy will make businesses more resilient to supply-chain disruptions. There are two main kinds of supply management issues: the first has to do with the supplier side, namely supplier selection, supplier relationship, supply planning, transportation and logistics. The second one deals with demand management issues. These are issues associated with product introduction, product line management, demand planning, product pricing and promotion preparation. Therefore, what typical methods can businesses adopt to enhance their power to sustain their operations when a major disruption hits? According to a recent research, two methods are increasingly demonstrating to work whenever a disruption happens. The first one is known as a flexible supply base, while the second one is known as economic supply incentives. Although a lot of in the industry would argue that sourcing from the sole supplier cuts costs, it may cause issues as demand fluctuates or in the case of an interruption. Therefore, counting on multiple manufacturers can alleviate the danger related to sole sourcing. Having said that, economic supply incentives work if the buyer provides incentives to induce more suppliers to enter the industry. The buyer will have more flexibility in this manner by shifting production among manufacturers, particularly in markets where there exists a limited amount of vendors.

In supply chain management, disruption inside a route of a given transport mode can dramatically impact the whole supply chain and, in certain cases, even bring it up to a halt. As such, company leaders like P&O Ferries CEO and Maersk CEO work hard to add flexibility within the mode of transport they depend on in a proactive way. For example, some businesses utilise a flexible 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, vessels as well as helicopters. Investing in multimodal transport methods such as for instance a combination of train, road and maritime transportation as well as considering various geographic entry points minimises the vulnerabilities and dangers associated with depending on one mode.

In order to avoid taking on costs, various businesses consider alternative roads. For example, because of long delays at major worldwide ports in some African countries, some businesses recommend to shippers to develop new tracks as well as traditional tracks. This plan detects and utilises other lesser-used ports. Rather than counting on just one major commercial port, as soon as the shipping company notice heavy traffic, they redirect products to more effective ports over the coastline and then transport them inland via rail or road. According to maritime experts, this tactic has many benefits not just in relieving stress on overrun hubs, but in addition in the financial growth of emerging regions. Business leaders like AD Ports Group CEO would probably trust this view.