If you had better visibility of your supply chain, you’d be able to react faster to unexpected problems and take steps to overcome them while there was still time. Tech solutions can help you track your goods at ground level, from factory to vessel and warehouse, all the way to the end consumer. When you have this kind of visibility, you can sense the first sign of trouble and hopefully react before it’s too late.
Yes, using air is comparatively expensive compared with other forms of transportation, but it can save your business money when used correctly. In most cases, air logistics provides another string to your bow rather than a standalone solution. Having a variety of transport modes at your disposal gives you flexibility and that helps build resilience into your supply chain. An integrated approach to logistics gives your business the ability to pivot to alternative solutions, such as air freight, in the face of capacity constraints and congestion in ocean transport.
The scale of this problem is enormous. Just a single weather-related disaster in the US is likely to lead to net business losses of around USD 1 billion. There is a practical need to have access to the most accurate information possible, which Maersk can provide thanks to our integrated services, owned assets and advanced toolset.
This needs to be combined with the capability to respond with alternative modes of transport at the last minute, if necessary. Beyond flexibility, reducing the number of partners, touchpoints and handovers in the supply chain also helps reduce complexity and risk, both huge contributory factors to reliability. So, as with all threats to your supply chain, you need to be prepared as early as possible and then have the agility to speed up, slow down or change your supply chain plans rapidly.
As China starts to open up again following further Covid-19 mitigation efforts, global demand is on the rise. Air freight is better placed to avoid congestion than sea freight of which is why Maersk is predicts it will have a much bigger role to play in transportation. It’s a rapid and effective solution for emergency situations and where moving blocked cargo is a business imperative. And it’s also a great option for goods where speed and availability are paramount to meeting customer expectations.
There’s no telling, but it does seem sensible to assume there will be plenty more unexpected disruptions to your supply chain in the years ahead. Take that view, and you can start to build in the resilience you need to smooth out the bumps in the road.
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