Global Supply Chain – Developing New Strategies

by | May 28, 2024

After the tragic collapse of the Key Bridge, the Port of Baltimore said last week that the vessel is expected to be removed by May 10. In a news release Monday, the Key Bridge Unified Command did not mention the deadline or when the removal of pieces of the bridge on top of the Dali would begin. Since the collapse, cargo has not been able to move to or from the Port of Baltimore. The port handles more cars and farm equipment than any other port in the country. It handles a record 52.3 million tons of international cargo, worth about $80.8 billion.

Companies are developing new strategies to plan for unforeseen disruptions in the supply chain. Several of these strategies are:

  • Move from “Just in Time” to Reserve Inventory
  • Diversify Supplier Base
  • Evaluate Supplier Scorecards

Before the COVID pandemic, more and more companies were reducing inventory by moving to a “just in time” strategy. However, the pandemic caused shortages throughout the supply chain, causing companies to have a reserve inventory. These added costs, forcing companies to implement processes to receive timely and accurate inventory information from their warehouses, 3PL’s, and suppliers to minimize the amount of reserve inventory costs. Innovate Managed Services can become an extension of your IT staff and can help you implement more electronic documents to gain more information about your inventory. With more information, you can plan and quickly adapt to the ever-changing global supply chain.

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