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Adapting Your Supply Chain to Mitigate Risk and Volatility
Q How are companies adapting their supply chains to current conditions? A In today’s market, companies are reshaping their supply chains to boost resilience and eciency amid disruptions like geopolitical tensions, inflation, and shifting demand. A key focus is diversification, with firms reducing reliance on single regions by expanding supplier networks across multiple countries. Many are also nearshoring or reshoring operations to cut lead times and minimize risks. Digital transformation plays a crucial role, as AI and predictive analytics optimize inventory and demand forecasting, while IoT and blockchain enhance real-time tracking. Automation, including robotics in warehouses, is streamlining operations and reducing labor dependence. Inventory strategies are shifting from just-in- time (JIT) to just-in-case (JIC), with businesses stockpiling critical components to avoid shortages, alongside multi-sourcing for backup options. Agile logistics is another priority, with companies adopting multi-modal transport to bypass bottlenecks and setting up regional hubs for faster distribution. Collaboration with suppliers is deepening to improve risk management, including stress testing for potential disruptions. Companies with strategic regional warehouses leveraging expertise and cutting-edge technology will be the keys to successful supply chains. Q How are shippers taking advantage of multi-modal solutions? A Shippers are increasingly adopting multi- modal solutions to enhance flexibility, reduce costs, and mitigate disruptions in global supply chains. By combining rail and road
transport, they avoid over-reliance on a single mode. By combining multi-modal solutions with cross-dock, consolidation, warehouse, and fulfillment programs, shippers can take advantage of operational eciencies and cost savings within their supply chain. For example, companies are shifting from all- road routes to intermodal to take advantage of the truck-competitive transit times, manageable costs, and sustainability factors. Digital platforms and real-time tracking help shippers dynamically switch modes based on disruptions, demand shifts, or cost fluctuations. Shippers that partner with a solutions provider that has expertise across modes see more resilient, cost-optimized results within their supply chain which can adapt quickly to real-world volatility. Q How has technology played a factor? A Technology enhances visibility, eciency, and agility. AI and machine learning optimize routes, predict demand, and automate inventory management, reducing waste. IoT sensors track shipments in real time, while blockchain ensures transparency in multi-tier supplier networks. Cloud-based platforms enable seamless collaboration across global partners, and robotics automates warehouses for faster fulfillment. Advanced analytics help companies assess risks and switch logistics modes dynamically. From predictive maintenance to route planning, technology enables smarter, faster, and more resilient supply chains, turning data into a competitive advantage. Companies that invest in and enhance their technology provide shippers with insights and visibility that can make a meaningful impact on their business.
Jessica Pokrajac Executive Vice President Managed Transportation and Customer Solutions Hub Group info@hubgroup.com
hubgroup.com 800-377-5833
Hub Group’s transportation and logistics solutions provide businesses with the tools, expertise, and innovative strategies needed to thrive in today’s competitive landscape. From intermodal to brokerage to cross-dock eciency, retail consolidation, and fulfillment, our comprehensive services drive performance, reduce costs, and deliver measurable results for our customers’ supply chains.
July 2025 • Inbound Logistics 37
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