Risks are an inherent part of the supply chain. They include a wide range of issues starting from inter-organisational, supplier base, environmental, integration among supply chain partners and catastrophic disasters. While diversifying your supplier network will give flexibility and pace to your business, collaborating with the right suppliers ensures that you aren’t compromising on the quality of suppliers’ goods.
Proactive monitoring of material flow and deploying smart technological solutions will flash early warnings that allow companies to mitigate supply chain disruptions before operations and performance are negatively impacted. Today, third party logistics (3PL) providers have stepped forward to provide services that assist businesses in mitigating supply chain risk, thus becoming strategic partners for their customers.
24 x 7 monitoring
Visibility drives resilience in a supply chain. An ability to track material from supplier to customer assists companies to respond to troublesome snags. Attaining full visibility in a supply chain is easier said than done, but proactive monitoring of potential disruptions across the network can assist you. The challenge with visibility lies in building the demand visibility upstream and tracking of material flow downstream.
Third-party logistics (3PL) providers have specialised services that combine intervention and remediation. These services provide 24 x 7 proactive shipment monitoring and deliver real-time visibility and financial protection.
Technology on tap
Without the right technology and expertise, real-time visibility is a myth. To drive decision making in your supply chain network “smart technologies” and “innovative strategies” are musts. GPS tracking and cloud-based systems provide instant access to information on your goods. Electronic invoicing, tracking and automated notification empowers businesses to easily place orders and enables real-time response to risk.
Third-party logistics (3PL) providers have designed their solutions in such a way that as soon as the problem occurs, information is received, and the situation can be quickly assessed. From there, the communication platform presses into action which will minimise the impact.
Planning for unforeseeable disruptions
Not all supply chain disruptions are predictable. Some freight forwarding or supply chain disruptions are caused by natural disasters, war, terrorism, theft, damage or from data breaches.
Businesses that import or export should be prepared with a risk management process to mitigate and minimise the impact of such events. Third-party logistics (3PL) providers can take a critical look at your business, identify and evaluate areas with risk exposure and then prioritise potential risks by the likelihood. With supply chain planning, they can then estimate the financial impact of each event. 3PLs can assist you in developing mitigation contingency plans across the supply chain.
Supplier management through education and robust processes
Your suppliers sit on the upstream of your supply chain. When suppliers experience issues and delays, the after-effects can be seen throughout the entire supply chain. After having selected a supplier for the supply of your goods, you can rely on a third-party logistics (3PL) company to create robust processes to manage the flow of goods and to educate suppliers on the downstream processes and the suppliers’ part in ensuring that there are no deviations from these processes.
Third-party logistics (3PL) providers can keep a very close watch on new suppliers and support them as they become accustomed to the new processes. This supplier management ensures that the suppliers understand your expectations clearly from the beginning and risk is mitigated right from the start. With new suppliers, ensure you are proactively communicating to your freight forwarding or 3PL company about this so they can stay in close communication with the new supplier.
Choosing the right supplier
It is important to choose financially strong and competent suppliers for long-term supplier viability. You should also be aware of your supplier risks such as regulatory compliance, exposure to economic and political conditions or anything that may impact their service.
Third-party logistics (3PL) providers and freight forwarding companies have substantial information about the local business environment by being in the market and through working with the same set of suppliers for different customer.
Third-party logistics (3PL) providers and freight forwarders can assist you in checking whether the supplier ticks all your boxes of being the right supplier for your business or not. This ensures stability in your supply chain and can assist in avoiding future disruptions.
Supply chain risk is a conceptualised event that adversely impacts supply chain operations (including transportation management) and its desired performance measures. The role of third-party logistics (3PL) providers is becoming increasingly important, not only as a service provider but also as a risk damper.
Their collaboration with several supply chain associates, expertise in identifying and evaluating supply chain areas exposure to risk, ability to provide visibility and smart tech capabilities make third party logistics (3PL) providers the backbone of leading supply chains in Sydney, Melbourne, Brisbane, Townsville, Darwin, Adelaide and Perth.