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

To avoid taking on costs, various companies consider alternate tracks. For instance, due to long delays at major worldwide ports in a few African countries, some businesses encourage shippers to build up new channels along with traditional roads. This tactic identifies and utilises other lesser-used ports. In the place of counting on a single major commercial port, as soon as the delivery company notice hefty traffic, they redirect goods to more effective ports across the coastline and then transport them inland via rail or road. In accordance with maritime experts, this tactic has its own benefits not merely in alleviating stress on overwhelmed hubs, but in addition in the economic growth of emerging markets. Business leaders like AD Ports Group CEO would likely trust this view.

Having a robust supply chain strategy could make companies more resilient to supply-chain disruptions. There are two main kinds of supply management dilemmas: the first has to do with the supplier side, particularly supplier selection, supplier relationship, supply planning, transportation and logistics. The next one deals with demand management issues. These are problems related to product introduction, manufacturer product line administration, demand planning, product prices and advertising planning. So, what typical methods can firms use to enhance their capacity to maintain their operations when a major disruption hits? In accordance with a recently available study, two strategies are increasingly showing to work each time a disruption happens. The first one is called a flexible supply base, while the second one is named economic supply incentives. Although some in the industry would argue that sourcing from a single supplier cuts costs, it can cause issues as demand varies or when it comes to an interruption. Hence, depending on multiple suppliers can offset the risk related to single sourcing. Having said that, economic supply incentives work if the buyer provides incentives to cause more companies to enter the industry. The buyer could have more freedom in this way by shifting production among vendors, particularly in markets where there is a limited amount of manufacturers.

In supply chain management, interruption in just a path of a given transportation mode can dramatically affect the entire supply chain and, in some instances, even bring it to a halt. As a result, company leaders like P&O Ferries CEO and Maersk CEO work hard to add flexibility within the mode of transportation they depend on in a proactive way. As an example, some companies utilise a flexible logistics strategy that relies on numerous modes of transport. They urge their logistic partners to mix up their mode of transport to incorporate all modes: trucks, trains, motorcycles, bicycles, vessels as well as helicopters. Investing in multimodal transportation methods such as for instance a mixture of rail, road and maritime transportation and also considering different geographical entry points minimises the weaknesses and risks connected with counting on one mode.