How can you effectively manage a supply chain with multiple modes of transportation?

Effective management of a supply chain involving multiple modes of transportation is crucial to ensure operational efficiency and customer satisfaction. To achieve this, a thorough assessment of transportation needs at each stage of the logistics process is essential. The following assessment methodology details the key steps in analyzing and addressing the various issues that can arise in this process. Step 1: Implement tracking and monitoring systems to eliminate the lack of visibility in the supply chain. Step 2: Conduct a detailed product analysis by evaluating product characteristics in detail. Step 3: Select modes of transportation that ensure timeliness by Evaluating the capacity of transportation modes.

Delivery is good when it's on-time delivery. Supply chain efficiency, logistics management, and customer satisfaction all depend on the shipping deadlines being met. A clear benefit of multimodal movement is that you minimize delivery delays by giving one company control over the entire freight. Door-to-door, after all, means that shippers and carrier providers are on the same page with shipments are order fulfillment. Going with multimodal shipping over intermodal shipping helps you reduce the risk of delays and keep customer satisfaction consistently high.

Choosing the mores of transportation depends mainly how fast the delivery required to the customer, nature and size and weight. Its also depends the model of business, suppose if your supply chain based on Ecommerce you need to prefer air freight due to same day delivery.

Further factors to consider when selecting the mode of transportation (MoT) are: Value density (price versus physical density/weight): 1. Expensive goods with high value density like microchips, jeweler etc. are better flown; iron ore is transported by ship. 2. Effects on carbon footprint and the impacts of you MoT choice on your customers and ESG ratings. 3. Characteristics of the goods to be shipped. Fragile goods might be effected by "bumby" MoT.

Gerenciar uma cadeia de suprimentos com múltiplos modos de transporte exige planejamento integrado e visibilidade completa. É essencial coordenar esses modos para otimizar a eficiência e reduzir custos, mantendo flexibilidade para lidar com mudanças na demanda ou imprevistos. Parcerias sólidas e sistemas que ofereçam rastreamento em tempo real são fundamentais. Além disso, uma gestão estratégica de estoque, considerando localização e análise de desempenho regular, são práticas-chave para garantir a eficiência e resiliência dessa complexa cadeia de suprimentos.

Importance of Mode Selection : - Influence of Delivery Speed - Considerations for Nature and Size of Products - Alignment with Business Model

In addition to evaluating your transportation mode, implement a thorough risk assessment program for your suppliers. You wouldn't want to justify transporting airplane fuselages in an Antonov to your bosses due to a supplier delay.

In order to compare and combine different modes of transport in supply chain management, it is crucial to follow a strategic and analytical approach. An effective methodology to achieve this is Cost Benefit Analysis (CBA). Economic, Financial and Operational Benefits: 1. Cost Optimisation: Transport and logistics costs can be reduced. 2. Improved Efficiency: This results in a more efficient and competitive supply chain. 3. Risk Reduction: Guarantees business continuity. 4. Increased Flexibility: The supply chain becomes more flexible and adaptable to changes in market conditions, customer demand or unforeseen situations. 5. Improved Service Quality: Service quality and customer satisfaction is improved.

Monitoring the performance of each leg in transportation is very important. Tracking and Tracing is the tool we use to monitor the performance. Cargoes like temperature control or chemicals must be monitored during the transit and till delivery over. Advance technologies like Block chain and AI is widely began to use by Supply chain companies.

Managing transportation performance can be complex. A common pitfall is relying on an automatic control spreadsheet and KPIs. Instead, actively manage the process, mitigate risks, and avoid justifying failures. Despite the challenge and cost of consistent follow-up and alerts, the proactive approach is more effective and cost-efficient in the long run.

Optimizing the transport network in a multi-modal supply chain involves strategically designing routes, enhancing connectivity, and consolidating schedules. This process aims to reduce costs, improve service efficiency, and strategically allocate resources. Successful optimization leads to a more responsive and cost-effective supply chain.

The fifth step involves innovating and adapting the transport strategy, incorporating new technologies and methods to meet evolving market demands. This includes navigating technological advancements, changes in transport markets, and challenges posed by globalization. Ensuring resilience, agility, and flexibility, this proactive approach aims to secure a sustainable competitive advantage and long-term success in a complex multi-modal supply chain environment.

Collaboration and integration within and outside supply chain partners are most important thing to be considered. Supply Chain is the complex network but once it perform well it will help organization to reduce cost and optimize delivery and attain OTIF.

Consider the following; 1. Ensuring Effective Collaboration with all your partners, internal and external. 2. Measuring the Performance at all levels, especially at the points of trans shipments. 3. Enable Automated decision making as much as possible using AI 4.Provide Track and trace, Visibility 5. Possibly using a single system of records (or at least a network of seamless systems) that is accessible across all partners.

The MoT highly depends on the locations of suppliers, customers and the internal supply chain (production sites and warehouses) as well as the resilience required. It is beneficial to (re)evaluate the overall supply chain strategy before selection suppliers, locations of production plants and warehouses. This sets the frame upon which the mode of transport can be optimized.