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What are the best practices for managing transportation disruptions in overseas markets?

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Transportation disruptions can have a significant impact on the performance and profitability of overseas markets. Whether it is due to natural disasters, political instability, trade disputes, or pandemic outbreaks, logistics managers need to be prepared to deal with the challenges and risks of moving goods across borders and continents. In this article, we will discuss some of the best practices for managing transportation disruptions in overseas markets, and how they can help you maintain your competitive edge and customer satisfaction.

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Kingsley Ukpai .M.

I help businesses develop and deploy Supply Chain & Operations Strategies that aid in attaining Organizational goals ||…

1 Assess your exposure

The first step to managing transportation disruptions is to assess your exposure to potential risks and vulnerabilities in your supply chain. You need to identify the critical nodes, routes, and modes of transportation that are essential for your operations, and evaluate how likely and how severe they are to be affected by different scenarios. You can use tools such as risk matrices, scenario planning, and SWOT analysis to help you with this process. By assessing your exposure, you can prioritize your actions and allocate your resources accordingly.

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Kingsley Ukpai .M.

I help businesses develop and deploy Supply Chain & Operations Strategies that aid in attaining Organizational goals || I also help bridge knowledge & competence gaps by providing 100% FREE Supply Chain and Tech courses
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In my experience, some of the best practices for managing transportation disruptions in overseas markets when assessing your exposure are: Prioritize understanding your end-to-end supply chain flow. Map out all transportation nodes, routes, and carriers to identify potential weak spots or single points of failure. Know where your goods are at all times, and identify alternative routing ahead of disruptions. Conduct a risk analysis of the countries/regions you operate in. Understand the local political, environmental, and infrastructure risks that could impact transportation. Track events and conditions to get ahead of disruptions. Build redundancies into your network. Identify backup carriers and transportation modes.

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2 Diversify your options

The second step to managing transportation disruptions is to diversify your options for moving your goods. You need to have multiple alternatives for your suppliers, carriers, intermediaries, and destinations, so that you can switch or combine them when needed. You can also use different modes of transportation, such as air, sea, rail, or road, depending on the cost, speed, and reliability factors. By diversifying your options, you can increase your flexibility and resilience in the face of uncertainty and change.

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Kingsley Ukpai .M.

I help businesses develop and deploy Supply Chain & Operations Strategies that aid in attaining Organizational goals || I also help bridge knowledge & competence gaps by providing 100% FREE Supply Chain and Tech courses
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In my experience, some additional best practices for managing transportation disruptions in overseas markets through diversification are: Build a qualified supplier base across multiple regions. Source from different vendors and factories to avoid over-reliance on a single supply point. Quality backup suppliers in case primary partners get disrupted. Use multiple freight forwarders and customs brokers in each region. Divide shipments across partners to mitigate risk exposure to any single company. Designate secondary forwarder relationships that can readily scale activity if needed. Leverage alternative shipping routes and carriers where possible. Ship via ocean, rail, and road intermodally to enable switching as required.

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3 Communicate and collaborate

The third step to managing transportation disruptions is to communicate and collaborate with your stakeholders. You need to establish clear and frequent communication channels with your internal and external partners, such as your suppliers, customers, distributors, agents, and regulators. You need to share information, expectations, and feedback, and coordinate your actions and plans. You also need to collaborate with your peers and competitors in the industry, and join networks and associations that can provide you with support and advocacy. By communicating and collaborating, you can improve your visibility and trust in the market.

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4 Monitor and adapt

The fourth step to managing transportation disruptions is to monitor and adapt to the changing conditions and events. You need to have a system for tracking and measuring your performance indicators, such as delivery time, quality, cost, and customer satisfaction. You need to use data and analytics to identify trends, patterns, and anomalies, and adjust your strategies and tactics accordingly. You also need to be proactive and agile, and anticipate and respond to the emerging opportunities and threats. By monitoring and adapting, you can optimize your efficiency and effectiveness in the market.

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5 Learn and improve

The fifth step to managing transportation disruptions is to learn and improve from your experiences. You need to conduct regular reviews and audits of your processes and outcomes, and identify the strengths, weaknesses, opportunities, and threats of your transportation management. You need to collect feedback and suggestions from your stakeholders, and implement best practices and innovations that can enhance your performance. You also need to document and share your lessons learned and best practices with your team and organization, and foster a culture of continuous improvement. By learning and improving, you can increase your competitiveness and customer loyalty in the market.

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6 Prepare and plan

The sixth step to managing transportation disruptions is to prepare and plan for the future. You need to have a contingency plan that outlines your actions and resources in case of a major disruption, and a recovery plan that guides your restoration and normalization of your operations. You need to test and update your plans regularly, and train and educate your staff and partners on how to execute them. You also need to have a long-term vision and strategy that aligns with your goals and values, and considers the potential changes and challenges in the market. By preparing and planning, you can reduce your risks and uncertainties in the market.

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Kingsley Ukpai .M.

I help businesses develop and deploy Supply Chain & Operations Strategies that aid in attaining Organizational goals || I also help bridge knowledge & competence gaps by providing 100% FREE Supply Chain and Tech courses
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In my experience, some key aspects of preparing and planning for transportation disruptions in overseas markets include: Develop crisis response playbooks outlining escalation protocols, key contacts, priorities, and communications plans to enable quick, informed reactions. Conduct simulation exercises to validate contingency strategies, uncover plan weaknesses, and prepare teams. Refine regularly based on the latest risk assessments. Ensure clarity on leadership mandates, empower fast decisions, and decentralize authority where advantageous. Define strategic emergency stock levels and policies. Factor in lead times, risks, and demand volatility by market. Build relationships with government agencies and industry groups.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Kingsley Ukpai .M.

I help businesses develop and deploy Supply Chain & Operations Strategies that aid in attaining Organizational goals || I also help bridge knowledge & competence gaps by providing 100% FREE Supply Chain and Tech courses
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No supply chain team can perfectly predict overseas transportation disruptions. The complexity is too great. However, organizations that remain adaptable, collaborative, and resourceful give themselves the very best chance to manage through the inevitable challenges. These qualities separate the resilient players. When volcanic eruptions in Iceland disrupted air freight into and out of Europe in 2010, technology companies like Apple had to very quickly shift shipments to ocean transport out of Asia to avoid product launch delays. Companies with supply chain agility could switch modes faster. I saw one medical device coy set up redundant transportation routes to mitigate border delays with the help of trucks when customs issues flared up.

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What are the best practices for managing transportation disruptions in overseas markets?

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1 Assess your exposure

2 Diversify your options

3 Communicate and collaborate

4 Monitor and adapt

5 Learn and improve

6 Prepare and plan

7 Here’s what else to consider

Logistics Management

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What are the best practices for managing transportation disruptions in overseas markets?

1

2

3

4

5

6

7

1 Assess your exposure

2 Diversify your options

3 Communicate and collaborate

4 Monitor and adapt

5 Learn and improve

6 Prepare and plan

7 Here’s what else to consider

Logistics Management

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