EN

AZ RU

Surviving Natural Disasters: Mitigating Supply Chain Risks

Thanks to globalization and the rapid geographic expansion of international supply chains, companies can allocate limited resources more efficiently than ever before. But, unfortunately, this process also has its downside - the unpredictability of weather conditions, on which many logistical processes partially depend. Today we are talking about natural disasters.

 

Natural disasters affect the transportation of goods in many ways, from delaying your supply chain and increasing costs to unpleasant situations such as lost cargo and damaged goods.

 

A supply chain disruption is defined as a critical failure in the overall logistics process. Natural disasters are one of the causes of such violations. They usually cause massive damage to several firms and facilities at once, which has a serious impact on the industry. With the globalization of supply chains, companies' exposure to disaster risk has crossed national borders, as the effects of a natural disaster in one geographic location can affect facilities in other locations.

 

But shippers have an opportunity to mitigate risks during natural disasters. First, you need to communicate frequently to keep your employees and products up to date. Effectively communicating changes to plans is a significant time and money saver, but this is only possible if your supply chain provides full transparency at every stage of the shipping process.

Tariffs

Obviously, your shipping rates will increase during a natural disaster. For example, if the roads are impassable, it will be necessary to use alternative routes, increasing fuel consumption and driving time.

Productivity

After a disaster, there is intense competition for limited transportation resources and equipment. Due to those limitations, the productivity of the company decreases and this will naturally lead to increased costs due to shortages at best. In the worst-case scenario, it will be impossible to find the necessary resources.

Shipping time

If under normal circumstances the transportation period would take two days, this period may be extended due to the uncontrollable effects of natural disasters. It may have to wait until the roads are open or until the warehouse/factory resumes operations. As a result, your travel time will increase.

Fuel

Fuel prices always rise after natural disasters. Oil refinery shutdowns, damage, or disruptions cause fuel prices to rise.

Refusal to carry

During a natural disaster, carriers often refuse to deliver goods to their destination. This is where the supply chain begins to break down: factories are disrupted while waiting for materials or components; retailers face the threat of stockouts, etc. All this leads to the loss of potential opportunities and income.

Internal delays

Often, cargo transportation within the country also depends on weather conditions. Even if there is zero risk of a natural disaster in your region, delivery of goods will be delayed due to facility closures or power outages due to inclement weather. And, of course, as a result, it will have a negative impact on logistics.

 

Of course, when the customer chooses a logistics company for the transportation of his cargo, he is concerned about the safety and integrity of the delivery, because various unexpected situations may arise during the transportation process. What do we do to transport your cargo safely? First of all, the general technical condition of the transport is strictly monitored, and all rules and standards ensuring the safety of cargo transportation are followed, especially during loading and unloading operations. Alliance Logistics specialists work out the optimal route, considering the time of year, weather conditions, and travel time.

April 12, 2023

Related Articles

July 6, 2023

International Trade: Underwater Reefs

Transporting goods across borders involves global competition and multiple levels of requirements. Optimal solutions, staying up to date with strategies and rules, and using the latest technology are essential for international market success.

 

According to analysts and experts in this field, the most important points are the following:

Requirements and procedures in this area are constantly changing, and it is necessary to know about changes in international norms and rules firsthand in order to avoid delays in both production and sale of goods. Regular review of these rules will reduce their impact on exports to zero.

Don't forget that all documents must be in order, always! Echoing the previous principle, the paperwork required for global delivery can become an obstacle if you do not have up-to-date knowledge of international legal norms. Incorrect or incomplete documents tend to delay shipment and implementation, creating the risk of cancellation and damage to the company's reputation.

Using free trade zones while adhering to the standards and guidelines of international trade agreements, both in the production and distribution of goods, helps to achieve a regional advantage for your business.

In the international trade system, innovative technologies open up new opportunities, and this is an indisputable fact. Through the use of technology, some costs are reduced, which, in turn, stimulates the growth of commercial activity. Here we are talking about transport costs, logistics costs, costs for port services and customs clearance, for obtaining the necessary information, and transaction costs. A striking example is artificial intelligence and self-driving cars, which help reduce transportation costs.

Of course, the important point is not so much the choice of the market for offering products, as the adaptation to it. You will need to analyze it, make sure it fits your business, determine how easy it is to reach it and determine whether it is worth it.

 

International trade is a complex activity, so it is important for exporting companies to keep these best practices in mind as well as take advantage of reduced logistics costs to increase market share and succeed in new ones.

Read more

June 14, 2023

6 Essential Tips for Safely Transporting Fragile Goods

Proper packaging of goods, especially for fragile goods, is critical to successful delivery. Fragile goods come in many forms and require special equipment, handling, and handling conditions. These include glassware, laboratory equipment, musical equipment, jewelry, household items, china, valuable collectibles, or liquid goods. We present to your attention 6 essential tips for safely transporting this category of goods.

1. Packaging is selected according to the characteristics of the cargo. Filling voids in the tare with soft material helps secure the cargo during transport. This method helps reduce the impact of bumps and shocks.

2. When packing and loading fragile goods, regardless of the type of transport, consistency should be strictly followed: placing heavier loads lower reduces the risk of crushing or damaging smaller, more fragile goods.

3. Choosing the optimal type of transport that ensures timely and reliable delivery depends on the characteristics of the cargo.

4. Packing of personal items. No matter how big or small the items are, if they are fragile, they must be packed properly and efficiently. The use of materials such as bubble wrap, fabric, or cardboard will protect the goods, the cargo in the box will additionally be strapped, taped, etc. it is recommended to provide with

5. Marking of the parcel. The presence of clear labels such as "handle with care" or "fragile goods" is a reminder that this group of goods requires special handling.

6. Loading and unloading operations are carried out manually or using special equipment only by experienced workers.

However, even with the most careful organization of transportation, unexpected circumstances can arise that cause damage or loss of cargo. It is in such cases that there is a category of cargo insurance, which is especially important during the transportation of fragile goods. Insurance sums guarantee the client compensation for the value of the property.

Read more

May 26, 2023

Efficiency and Cost Savings: The Advantages of Multimodal Transportation

Shippers all over the world use multimodal transportation, and for many reasons, this system has many advantages.

What is multimodal transportation? This is a special type of freight transport, which involves the use of more than one mode of transport to deliver goods from the supplier to the buyer.

It is important to note that multimodal transportation involves changing only the method of shipment, without any changes in the handling of goods. For example, if goods are shipped in a specific container, the shipping method will change, but the container will remain the same.

Advantages of multimodal transportation

Multimodal transportation has a number of advantages that make this system one of the most commonly used in global logistics, namely:

- Reduced transport costs

- Better logistics management, combining the advantages of each mode of transport

- Using the same container reduces the time of loading, unloading, and handling of general cargo

- Fewer checks and inspections after sealing cargo units and containers

- Better item tracking

- Reduced risk of product loss due to theft or damage

- Reducing the cost of monitoring goods

- Reducing the time of cargo transportation

Multimodal transport services optimize air, sea, road, and rail transport from start to finish, and in an ever-evolving logistics environment, the network of partners is expanding. As Alliance Logistics, we specialize in multi-modal transport with the most cost-effective logistics solutions you may need, ensuring you achieve maximum efficiency while reducing costs and protecting the environment.

Read more
Go to blog