Recent Japanese Typhoon, Trade Policy Changes, and Other Uncontrollable Events Require Strong Risk Mitigation Strategies to Continue Operating Profitably
HICKORY, NC (October 17, 2019) – Transportation Insight, a leader in Enterprise Logistics solutions and services for the end-to-end supply chain, helps organizations uncover vulnerabilities within their supply chain networks to mitigate risk and continue operations despite uncontrollable events. Supply chain disruptions from recent weather events, trade policy changes, oil supply attacks and political and economic unrest can slow the flow of raw materials for production, affect the delivery of customer orders and lower bottom line revenues. Businesses need to be prepared for disruption by having in place an overall risk management strategy and a flexible supply chain network capable of adjusting when the unexpected arises.
“Global events like Typhoon Hagibis that made landfall in Japan bring widespread transportation disruptions, along with the displacement of millions of people. Ripples echo across the Japanese economy and the supply chain that supports it, as Tokyo streets are closed, storefronts are abandoned and business owners lose revenue,” says Transportation Insight Vice President of Supply Chain Analytics John Richardson. “Mitigating the supply chain risks that impede business operations requires rigorous vulnerability audits. These can uncover options for long-term network design strategies that create a nimble supply chain capable of pivoting during short-term disruptions.”
Because of the most recent Japanese typhoon, store shelves are empty, nearly half a million homes are without power and storm surges drowned Tokyo neighborhoods. Shippers who import from Japan will see delays for shipments scheduled to go through the port of Tokyo and suspension of transportation services. Typhoon Faxai, which occurred just a month ago, damaged over 9,000 structures according to the Fire and Disaster Management Agency (FDMA). The impact of Typhoon Hagibis is expected to cause even more damage. With in-depth risk mitigation strategies that include “what if” scenario modeling, organizations can prepare for and limit the impact of power outages, transportation loss, low raw material inventories and facility destruction.
“The challenge for businesses is when a disaster will happen, not if,” adds Richardson. “Businesses can prepare by effectively identifying and modeling alternatives so contingency plans can be quickly implemented when the unplanned happens. This applies not only to disasters. When the market experiences radical shifts, the ability to rapidly transition to a prepared back-up plan can give an organization a competitive advantage.”
Transportation Insight’s comprehensive suite of Supply Chain Analytics solutions is an asset for organizations focused on risk mitigation strategies. Enterprise Logistics offerings, complemented by Transportation Insight’s team of seasoned analysts, helps improve business leaders’ ability to prepare for disruptions. Visibility across the end-to-end supply chain, from raw materials to end customer, is integral to effective response. With clear awareness of supply chain activities supported by real-time information, an organization can take quick action if an issue arises.
Transportation Insight leverages an unbiased analysis of client’s production and supply chain data to validate what works well and uncover areas for improvement. Using mixed-integer linear optimization tools, supply chain consultants create a model of clients’ supply chains to analyze production and supply chain data. Supply chain vulnerability analysis results in an optimized supply chain that provides the least cost to serve; aligning sourcing and distribution, optimizing inventory levels and matching demand with production. Thorough supply chain data analysis can mitigate strategic, financial and operational risk within an organization and, in doing so, support continued growth and sustainable profits.
About Transportation Insight, LLC
Transportation Insight is a multi-modal, lead logistics provider that partners with manufacturers, retailers and distributors to achieve significant cost savings, reduce cycle times and improve customer satisfaction rates through customized supply chain solutions. Transportation Insight offers a Co-managed Logistics® form of 3PL, carrier sourcing, freight bill audit and payment services, state-of-the-art transportation management system (TMS) applications, parcel technology platform (audit, engineering, advanced analytics) and business intelligence. The Enterprise Logistics division of the Transportation Insight Holdings, LLC, (TI Holdco) portfolio, Transportation Insight operates alongside transactional freight brokerage Nolan Transportation Group (NTG) to help client shippers engineer efficient supply chain networks. Combined, the $3.5 billion TI Holdco organization serves 7,000 clients with logistics management services that include domestic transportation (TL, LTL, Parcel), e-commerce solutions, supply chain analytics, international transportation, warehouse sourcing, LEAN consulting and supply chain sourcing of indirect materials including secondary packaging. Headquartered in Hickory, NC, Transportation Insight has secondary operating centers and client support offices across North America. For more about Transportation Insight, visit www.transportationinsight.com, email [email protected] or call 833-421-0433.