Today’s supply chains are a lOT complicated and extended worldwide. They are always vulnerable to market disruption. Disruption is inevitable, it can happen due to various reasons but your supply chain needs to be ready to face it all the time. Natural calamity, market shock, economic crisis and the latest global pandemic are few of the reasons that can cause a global supply chain disruption. Your business can withstand the disruption with a flexible supply chain network and excellent risk management. Trucking business software helps to gather accurate and reliable information about your truck.Read More
How to Manage Disruption ?
The best way to deal with the prospective supply chain disruption or risk management is to be able to deploy countermeasures to the potential risks and develop a program that can guide you through the tough times. End-to-end visibility is the key to develop a robust supply chain. If your business wants to survive through the supply chain risks then you better have a robust supply chain where you can track the goods right from the point of raw material to all the way to the customers. You can also pinpoint the potential obstacles that can disrupt your supply chain in the tough times. Advanced technology can play a vital role by creating a flexible supply chain and handling the potential risks effectively.
To manage the supply chain effectively, it is very important to figure what potential risks the shipments may come across when in transit. Therefore, you need to look at the risk from the eyes of the cargo in transit. This simply means that you need to assess the risk at every level.
Manage Supply Chain Risk Through the Eyes of the Cargo in Transit
You need to think from the cargo’s perspective which potential risk or danger can come across while in transit and then try to take precautionary measures to avoid that situation from happening.
- Security of the Cargo
First you need to check how valuable or precious the cargo is. If the cargo is important and a lot of people want it or dream to have it, then there is a risk of potential theft or hijacking of the cargo. Now once you have established the high value of your freight then you have to pay huge attention to the security of the cargo with the help of secure containers. These security risks multiply if your cargo needs to cross multiple countries.
- Quality of the Cargo
Second thing you need to check is the type of freight, whether it can be broken easily or not. You need to check what kind of packaging you must do to ensure the safety and integrity of the freight. When the goods in your supply chain are transported via sea route, they travel a huge distance and you need to ensure the quality and security of your freight by secure containers that can withstand the external shock or force and keep your shipment safe. There are various other external factors like weather conditions, climatic variation and wind etc that can easily impact your freight. Keeping this in mind, you have to plan and pack your shipment in such a way that the quality of the consignment stays uncompromised.
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- Shipment Schedule
This is a very important factor to consider from your cargo’s perspective. You need to pinpoint all the factors that can potentially delay your shipment from the first point to the final destination. Everybody expects their goods to reach them in a timely fashion. To run an effective supply chain, you need to take advanced steps to avoid any unnecessary delay due to anything possible.
- Financial Situation Throughout the Supply Chain
From a freight point of view, all the players involved in the supply chain must be financially sound. If there are any hiccups at any point in the supply chain that can be the reason for a potential disruption. All the rules and regulations also need to be properly followed to ensure the smooth movement of goods at each level.
- Health, Safety and Environmental Parameters Need to Be Followed
For a successful and sustained supply chain, companies need to ensure that all the health, safety, environmental and the legal parameters are followed according to the international standards. While keeping all this in mind, the most important player throughout the supply chain is your employees and you must ensure their well being is also.
How Can You Lower the Risk in Supply Chain Management?
To contain the risk in the global supply chain you need to take a step by step approach to figure out and pinpoint the risks and respond to them accordingly. With freight management solutions you can do this by focusing on the three major areas of interest.
- Pinpointing the Risk: By going through the historical data and real time information about the possible disruption in the supply chain, you have to make a list or pinpoint the potential risks. Then you can create a ranking based on the risk profile and the biggest risk needs to be taken care of first.
- Managing Risk Quickly : You have to reduce the risk management time from several days to a few hours with the help of advanced insights. This will not only improve your customer service but also establish your company’s reputation for the future.
- Avoiding the Risk : There are few risks you can avoid for the time being to ensure the smooth movement throughout the supply chain.
Actionable approach is very necessary to deal with the supply chain risk and effectively counter them.