There are many industries operating in remote locations (like oil, gas, and mining industries) that rely on a smooth supply chain performance. However, the shipping to and from remote locations is not only challenging but costly; this type of transportation demands strict control, planning and analysis. For example, oil and gas industries experience fluctuating freight transportation costs and excess exploration costs, all which affect product prices and adds pressure to logistics management.
Millennium Logistics Management explores the biggest shipping challenges and provides 3 tips for maintaining a steady supply chain process for businesses in remote locations:
Challenge #1: Safety Rules
Shipping to remote sites becomes even more challenging when you factor in isolated locations, bad roads and limited or unavailable mobile communication. In these instances, safety standards limit the amount of qualified carriers and companies for these locations require experienced drivers to take these routes.
Challenge #2: Infrastructure
Shipments should be packed and secured properly to ensure safe handling to their final destinations because most highways are unpaved, with steep grades and in remote locations.
Challenge #3: Shipping Equipment
The weight and size of the equipment is another important factor because it makes it difficult to move to, from and around remote areas. Shipments cannot be delivered to some addresses (only to a GPS coordinate set). Disruptions in equipment deliveries can result in significant monetary loss even in the smallest of disruptions.
One thing is for certain: A company in a remote location can achieve better visibility and control of shipping when working with reliable vendors and partners, better transportation options, careful planning and software implementation.
We suggest the following 3 tips for maintaining a steady supply chain in remote locations:
Have Trustworthy Carriers:
Particular and complex transportation requirements in this industry make it hard for companies to manage freight unless they work with a reliable logistics provider (such as Millennium Logistics Management) or carrier. Companies must rely on a carrier’s expertise and safety standards when it comes to specialized, bulky freight or time sensitive deliveries. It is important for carriers to use GPS systems that provide their drivers with exact locations. Carriers should also provide their drivers with phones to ensure constant communication and freight tracking.
Have Visibility with TMS:
The management of supply chain is impossible without real time visibility of shipments, which is why we recommend a reliable TMS (transportation management system). A transportation management system organizes inbound and outbound shipment management, accumulates all initial data and makes the decision making process easier and more effective. Whether you are a supplier, an owner or a 3PL provider, you should always know where each of your shipments is located, what its condition is and when it is arriving.
Have Proper Planning for Optimization:
Industries located in remote locations need to plan ahead. Simply moving shipments from point A to point B without any analysis and planning will result in high transportation costs. It is important to coordinate and consolidate shipments to meet challenging logistics conditions and avoid additional costs, which is why planning helps companies’ ERP (enterprise resource planning) integrate with a logistics provider’s TMS and allows for more optimal routes.
Take advantage of the expertise of a third party logistics provider like Millennium Logistics Management to ensure dependable partnerships with pre-qualified carriers, scheduling and real time visibility with a transportation management system and a steady supply chain in remote locations. For more information about the information provided in this article or our logistics management services, contact Millennium Logistics Management today!
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