Solutions to Supply Chain Disruptions

Solutions to Supply Chain Disruptions

Logisitcs companies can explore different solutions in order to minimize future disruptions 

One of the first things to take into consideration is to expand your network.

One simply cannot rely solely only one a handfull of suppliers. The reason for this is quite clear, it is impossible to always have a truck where you need it.

The reason for which 4PL works quite well is because you have hundreds of different transporters to choose from, allowing for more flexibility, especially in such fragile moments as the ones we are experiencing.

Another suggestion, is to explore new technological enablers, in order to reduce humar error, allow for traceability and transparency.

Of course the blockchain allows for several solutions in this sector. 

Another interesting idea is cost allocation based on urgency. It seems quite trivial, but in transports, the more you pay the better the service will be (more often than not).

FMCG ( fast moving consumer goods ) are a quite evident example, where fullfilment has to be fast and cost reduction will most likely lead to a bad service.

Let's not forget that another basic concept is that of partnering with big warehouses. This allows to ship bulk orders and then distribute them based on demand.

Hence, if you are able to plan demand accordingly and shape it, you need to focus on last mile shipping. This allows for your goods already to be close to your consumers, reducing the risk of delays in deliveries.

Another trick is to examine your sales data and run forecasting algorithms, in order to predict ahead of time when you should plan the shipments.

Last but not least, consider investing in smart warehousing systems. This is of course a big investment at first, but the amortization, with comparison with the costs of human capital, are quite convenient. 

Nontheless, should you want some consulting services, to develop smart warehouses or simply supplychain management solutions, feel free to contact us. The consultation will be free of charge and non binding.