Here's how you can utilize critical thinking and logical reasoning to manage risks in logistics.

The first step in managing risks is to identify them. This involves understanding the entire logistics process and pinpointing potential risks at each stage. These risks can include transportation delays, supply chain disruptions, inventory shortages, and more. In one of my projects at FedEx, I identified a major risk in the form of potential delays due to customs clearance in a specific country. By recognizing this early, I was able to implement strategies to mitigate the impact.

Case study 2023: applied to all points in this article : Winter Apparel company selling european and chinese made products to distributors-online shoppers in Europe -Geo risks where the daily logistics operations are taking place. In our Case: risks of high shipping cost in China, Risk of protective customs tariff in Europe -Layering, short seeing, high cost: in our case:The outsourced inventory is sold from Europe warehouses and not from china directly ( additional cost-time and weak forecast) -Working in silos by having logistics operations for every brand, line and flow! In our case:There are 14 active shipping partners working in non-competitive mode within logistics : shipping-warehousing-customs clearance- online fulfillment etc,

Once risks are identified, the next step is to evaluate relevant data to understand the likelihood and potential impact of these risks. This involves analyzing historical data, current trends, and predictive models to make informed decisions. At Michelin, I used data analytics to assess the risk of inventory shortages during peak seasons. By evaluating past sales data and supplier performance, I was able to predict potential shortages and take proactive measures.

Assess data : data cleaning and mining: categorize all data collected among 4 sections : -Important-Urgent -In our case study : Increase in Air freight from China -Not important-Urgent :Increase in ratio of unclaimed shipments-returns -Not urgent-Important In our case study : shortage in Inventory in December -Not urgent-not important In our case study : Increase of taxes in Europe on chinese Solar products Accordingly the splitted data among those sections , we can clean what should be cleaned and mine in the remaining!

Strategic planning involves developing comprehensive risk management plans that include contingency measures. This requires a thorough understanding of the logistics process and the ability to foresee how different risks might impact operations. While working with FedEx, I developed a strategic plan to mitigate the risk of transportation delays due to severe weather. This plan included alternative routes and pre-arranged agreements with local carriers.

The SPD strategic plan development:mid and long term According to the mining done over the data collected : -develop strategy for mid long term that allows to develop healthy logistics practices : In our case study : Set remote office in china to supply during heavy demands in December-develop the office in china to include main part of sourcing- develop storage space as regional hub in china where to apply centralized replenishment and centralized fulfillment In Summary ,the seasonal fulfillment was developed into regional Hub to cut cost and increase sales volumes.

-Set Geo-Map of logistics operations ( Include countries contributing in the value chain) in Our case: China Europe -Set a centralized control tower to monitor all flows specially flow of information, documents and data . In our case : set control tower in mid geography among Europe and china ( max sun time in geography) -Link all players internal external into one library (any party involved in main process-sub process of logistics operations )In our case:have weekly meetings internally OMP and externally SLA to share bottlenecks on one platform -Solutions to frain immediate impacts on day to day operations In our case: determine best shipping partners to run the flows hence reduce layering and develop integrations into contract logistics.

Measurements : what can’t be measured can’t be considered! The improvements to active processes or the sub processes implemented should have a measurement criteria-metric in order to compare performances ( old and new) also to compare performance as benchmarking! In our case study: Monitor freight cost before and after implementation of RFQ ( Quotations and rate card sheets) also monitor the cost before and after shipping directly from far east to European distributors!

Fostering adaptability within the team and the organization is essential for managing risks effectively. This involves promoting a culture of continuous learning and improvement, as well as encouraging innovative solutions to emerging risks. At FedEx, I encouraged my team to participate in regular training sessions on the latest logistics technologies and trends. This helped us stay adaptable and prepared for any unexpected challenges.

It is important to consider external factors such as geopolitical changes, economic conditions, and technological advancements that can impact logistics operations. Staying informed and agile can help mitigate these broader risks. At Maersk, I keep a close watch on geopolitical developments that could impact international shipping routes. This proactive approach enable us to quickly adapt to changes and minimize disruptions to our logistics operations.