I. Main risk sources of supply chain delays
Risk type Specific manifestations Impact degree
International transport delays Port congestion, ship cancellations, flight reductions ★★★★★
Raw material shortages Upstream suppliers’ supply interruption, price increases ★★★★☆
Production interruptions Factory shutdowns (epidemic/natural disasters), labor shortages ★★★★☆
Customs clearance issues Document errors, inspection delays, tariff disputes ★★★☆☆
Demand fluctuations Customer order cancellations or surges ★★★☆☆
II. Supply chain delay response strategies
- Transport optimization
(1) Multimodal transport and alternative routes
When ocean freight is delayed:
Switch to China-Europe Express (railway) (10-15 days faster than ocean freight)
U.S. routes switch to West Coast ports + inland trucks (avoiding congestion in the East Coast)
When air freight prices increase:
Use Fast shipping (e.g., Maersk Express arrives at the port in 12 days)
Foreign warehouse stocking: Stock up in advance at a third-party warehouse in the destination country
(2) Logistics supplier management
Risk diversification: Sign contracts with 2-3 freight forwarders to avoid relying on a single channel
Real-time tracking: Require freight forwarders to provide GPS/container tracking systems (e.g., Maersk Spot)
- Supply chain resilience building
(1) Supplier diversification
Strategy Implementation method Case
Dual sourcing: Purchase the same material from A/B suppliers (geographically dispersed) Electronic components are purchased from Shenzhen and Vietnam at the same time
Local substitution: Find secondary suppliers around the target market (e.g., Eastern Europe replaces China) Polish factories supply EU orders
(2) Safety stock setting
Formula:
Safety stock = (maximum delivery time × maximum daily consumption) – (average delivery time × average daily consumption)
Recommendations:
High-value goods: Keep 4-6 weeks of inventory
Low-value goods: Keep 8-12 weeks of inventory
- Data-Driven Decision-Making
Tool Applications:
Real-Time Alerts: Flexport Platform monitors global port congestion indexes
Demand Forecasting: Use ToolsGroup or Oracle Demand Planning
Key Metrics Monitoring:
Markdown
- Order-to-Inflight (OTIF) ≥ 95%
- Inventory Turnover ≤ 60 days (Consumer Goods Industry)
III. Risk Management System Development
- Risk Identification and Assessment
Risk Matrix Template:
Risk Event Probability Impact Response Measures
Shanghai Port Lockdown Medium High Pre-route to Ningbo/Qingdao Port
US Customs Detention Low Medium Pre-review documents + purchase insurance
- Emergency Response Mechanism
Sample Plan:
Chart
Code
- Insurance Coverage
Recommended Insurance Types:
Marine All Risks
War and Strike Insurance (especially for Red Sea/Middle East routes)
Letter of Credit Insurance (covers payment risks)
IV. Cost Control and Customer Management
- Control of Delay Additional Costs
Cost Type Control Method
Demurrage Apply for a free shipping period with the shipping company in advance (e.g., COSCO offers 21 days).
Overdue storage fees: Sign a flexible overseas warehouse contract (charged based on actual usage).
Customer claims: Include a force majeure clause in the contract.
- Customer Communication Strategy
Script template:
“Due to recent space shortages on the Asia-Europe route, your order (#12345) is expected to be delayed by 5 business days. We have upgraded to a priority shipping option and attached a link to the latest shipping history. As an apology, we will provide a 3% discount coupon for your next purchase.”
V. Recommended Technical Tools
Tool Type
Recommended Solution
Usable Scenarios
Supply Chain Visualization
Project44, Shippeo: Real-time tracking of global shipping nodes
Dynamic Inventory Management
SAP IBP, Kinaxis RapidResponse: Intelligent multi-warehouse allocation
Risk Simulation
Resilinc, RiskMethods Predict the impact of strikes/natural disasters
VI. Implementation Steps and Timeline
Risk Audit (Weeks 1-2)
Draw an end-to-end supply chain process map
Identify the top five high-risk areas
Implementation of the plan (Weeks 3-8)
Sign a backup logistics agreement
Deploy an inventory monitoring system
Stress Testing (Week 9)
Simulate a strike scenario at a US West Coast port
VII. Expected Results
Increase supply chain disruption response speed by over 50%
Control transportation cost fluctuations within ±5%
Maintain a 90%+ customer order fulfillment rate