Optimising Supply Chain Networks: Strategies for Minimising Transportation Costs and Mitigating Currency Risks

Aleke Jude Uchechukwu¹ and Echegu Darlington Arinze²

¹Faculty of Economics Kampala International University Uganda.

²The School of Mathematics and Computing, Kampala International University Uganda

Corresponding Author: jude.aleke@kiu.ac.ug

https://orcid.org/0009-0009-6807-9484

ABSTRACT

Optimising supply chain networks has become essential for organisations aiming to maintain competitiveness and profitability in today’s globalised economy. The primary focus of this optimisation endeavour is to reduce transportation expenses and manage currency risks since these factors have a direct influence on the company’s profitability and overall efficiency of the supply chain. This article offered a comprehensive examination of the importance of optimising supply chain networks, the challenges in reducing transportation expenses, and the dangers of currency fluctuations. An efficiently optimised supply chain network allows organisations to minimise the time it takes to deliver items, decrease the expenses associated with keeping inventory, and enhance overall efficiency in transporting products from suppliers to end consumers. To achieve cost-effective transportation logistics, meticulous planning, coordination, and optimisation are necessary across the whole supply chain network. Furthermore, the ever-changing nature of transportation markets, along with increasing customer preferences and geopolitical risks, increased the difficulty of minimising transportation costs while ensuring timely deliveries and satisfying service level agreements. The fluctuation in currency values presents a significant threat to enterprises involved in global commerce, affecting the expenditures associated with purchasing imported products, currency exchange costs, and the overall profitability of the supply chain. Fluctuations in currency exchange rates may diminish business margins, escalate procurement expenses, and interrupt supply chain operations. Implementing effective currency risk management methods was crucial for minimising the negative impact of currency fluctuations and safeguarding against financial losses in a highly linked and unpredictable global economy. Research had emphasised the need of using sophisticated data analysis, technology-driven solutions, and cooperative alliances to optimise efficiency, decrease expenses, and strengthen adaptability in the midst of unpredictability. Moreover, the incorporation of sustainability concepts into supply chain procedures was becoming increasingly popular as organisations acknowledged the significance of harmonising economic goals with environmental and social factors. Efficiently optimising supply chain networks to save transportation costs and mitigate currency risks was a crucial undertaking for organisations functioning in the current global marketplace. Companies may improve operational efficiency, reduce risks, and provide sustainable value for stakeholders by dealing with the challenges of transportation logistics and currency changes. To remain competitive in a constantly changing business environment, organisations need to continuously adjust to market dynamics, make use of new technology, and form collaborative alliances to optimise their supply chain.

Keywords: Supply Chain Optimisation, Transportation Expenses, Currency Hazards, Globalised Economy, Operational Excellence.

CITE AS: Aleke Jude Uchechukwu and Echegu Darlington Arinze (2024). Optimising Supply Chain Networks: Strategies for Minimising Transportation Costs and Mitigating Currency Risks. RESEARCH INVENTION JOURNAL OF SCIENTIFIC AND EXPERIMENTAL SCIENCES 3(2):25-29.