Executive Briefings

Redundancy Planning in Seaport Gateway Selection

Properly planning for the unplanned - a supply chain disruption of any kind and for whatever reason - means optimizing your distribution center network, having the right modes lined up to transport your goods to market, and ensuring that you choose the best ocean port, says John A. Moseley, general manager, trade development, at the Port of Houston Authority. It also means having a backup port just in case.

Redundancy planning is the term Moseley uses when he speaks of insuring that a company's bottom line not disastrously affected by an event. That, of course, can be something like the catastrophic earthquake-tsunami combination that ravaged Japan, the recent flooding in Thailand or it could be a labor dispute that shuts a port down.

Planning for such events should include gateway selection, Moseley says, because being unable to call your intended port, regardless of the reason, could cost a bundle. "Port selection plays into your distribution center network optimization," he says.

"Insuring that you have the right kind of gateways in play, have the different modes you need to transport your goods to market, on a shelf for the consumer, that's proper redundancy planning, making sure your business is uninterrupted and the bottom line is protected at all times."

Moseley isn't criticizing any other port in particular, nor does he suggest that a given entry way is more susceptible to potential problems. Nevertheless, he says there is a need to have alternatives lined up. "A company may have a preference for one over the other," he says, "but it should always plan to have something as a contingency, other options they can switch to in the event of some unforeseen or unplanned event that may interrupt their supply chain or business."

Moseley sees port selection as just one part, though a vital one, of an agile supply chain. Where true agility exists, the effects of disruption can be minimized, but how does one obtain that degree of nimbleness?

Selecting the right partners is a large part of the process. Experts can guide you through strategic planning, to see that your supply chain has the proper redundancy planning, not just in gateway selection but in ocean transportation, carrier contracting, and warehouse or DC location. "You must talk to the right people to set up the right kind of processes for your type of business."

To view video in its entirety, click here


Keywords: Global Gateways, Ocean Transportation, Logistics, Business Strategy Alignment, Supply Chain Analysis & Consulting, Global Supply Chain Management, Port Selection, Risk Management

Redundancy planning is the term Moseley uses when he speaks of insuring that a company's bottom line not disastrously affected by an event. That, of course, can be something like the catastrophic earthquake-tsunami combination that ravaged Japan, the recent flooding in Thailand or it could be a labor dispute that shuts a port down.

Planning for such events should include gateway selection, Moseley says, because being unable to call your intended port, regardless of the reason, could cost a bundle. "Port selection plays into your distribution center network optimization," he says.

"Insuring that you have the right kind of gateways in play, have the different modes you need to transport your goods to market, on a shelf for the consumer, that's proper redundancy planning, making sure your business is uninterrupted and the bottom line is protected at all times."

Moseley isn't criticizing any other port in particular, nor does he suggest that a given entry way is more susceptible to potential problems. Nevertheless, he says there is a need to have alternatives lined up. "A company may have a preference for one over the other," he says, "but it should always plan to have something as a contingency, other options they can switch to in the event of some unforeseen or unplanned event that may interrupt their supply chain or business."

Moseley sees port selection as just one part, though a vital one, of an agile supply chain. Where true agility exists, the effects of disruption can be minimized, but how does one obtain that degree of nimbleness?

Selecting the right partners is a large part of the process. Experts can guide you through strategic planning, to see that your supply chain has the proper redundancy planning, not just in gateway selection but in ocean transportation, carrier contracting, and warehouse or DC location. "You must talk to the right people to set up the right kind of processes for your type of business."

To view video in its entirety, click here


Keywords: Global Gateways, Ocean Transportation, Logistics, Business Strategy Alignment, Supply Chain Analysis & Consulting, Global Supply Chain Management, Port Selection, Risk Management