What Strategies Can be Used to Adjust Logistics Plans Under External Pressures?


    What Strategies Can be Used to Adjust Logistics Plans Under External Pressures?

    In the dynamic world of logistics, the ability to pivot swiftly in response to unforeseen circumstances is crucial, as illustrated by a National Supply Chain Manager's tale of helicopter retrieval amidst major flooding. Alongside expert narratives, we've gathered additional insightful answers that delve into the strategies employed when plans must change on the fly. From leveraging AI for better forecasting to maintaining safety stock as a buffer, these experiences and tips span the gamut of logistical agility.

    • Consider Out-of-the-Box Ideas
    • Implement Real-Time Shipment Tracking
    • Utilize AI for Demand Forecasting
    • Optimize Routes with Multimodal Transport
    • Maintain Safety Stock as Buffer

    Consider Out-of-the-Box Ideas

    One of the most memorable and unique situations I can recall in my 30-year supply chain career occurred with a critical shipment that was stranded at a remote facility, mid-ground transport to our destination, due to a force majeure obstacle (flooding). This challenge motivated creative thinking to explore unconventional methods for resolution. Due to the critical nature of this shipment (with much at stake), I facilitated the use of a helicopter with multiple parties to fly into the compound and retrieve our product. At the time, the request seemed extraordinary, but the suggestion was considered and was successfully accomplished.

    Georgina FenningNational Supply Chain Manager

    Implement Real-Time Shipment Tracking

    In today’s dynamic market, the implementation of real-time tracking systems is crucial. Real-time tracking allows businesses to monitor shipments every step of the way. With this kind of visibility, when an unexpected event occurs, rerouting decisions can be made swiftly and effectively.

    Immediate action can help avoid delays, ensuring that goods arrive on time. Quick adaptation to changes is key in maintaining customer satisfaction. Review your tracking solutions today to enhance your responsiveness to external pressures.

    Utilize AI for Demand Forecasting

    Leveraging artificial intelligence (AI) for demand forecasting is becoming increasingly popular. AI can analyze vast amounts of data to predict future requirements more accurately. This predictive ability allows businesses to adjust procurement and distribution in response to anticipated market changes.

    By staying one step ahead of trends, a company can adapt its logistics strategy proactively rather than reactively. Incorporate AI forecasting tools into your operations to achieve greater agility.

    Optimize Routes with Multimodal Transport

    Flexibility is key when dealing with disruptions in logistics, and switching to multimodal transportation offers just that. Multimodal transportation utilizes different modes of transport, like trucks, trains, and ships, which can be combined to optimize routes. This strategy reduces dependency on a single type of transportation, which can be beneficial if one mode becomes compromised due to external pressures.

    This method also allows for rerouting using different methods if necessary. Investigate multimodal options to enhance your transport flexibility.

    Maintain Safety Stock as Buffer

    Maintaining a higher level of safety stock can serve as a buffer against sudden supply chain disruptions. It acts as an insurance policy against delays by providing a reserve of goods that can fulfill customer orders when supply is interrupted. While this approach might require more storage space and tie up capital, the benefits of being able to maintain service levels during unforeseen events are significant.

    It's essential to balance the costs with the benefits to ensure business continuity. Assess your inventory strategy to ensure you have adequate safety stock for times of pressure.