Flow Constraint
Points of congestion occur within a supply chain when the volume of goods exceeds the physical or administrative processing capacity of a specific node. A logistics bottleneck can appear at a port or a warehouse. These delays ripple through the network and affect the timing of all downstream activities.
Capacity Limitation
Physical constraints such as a limited number of loading docks or a shortage of drivers create stalls in movement. Labor strikes or equipment failures can turn a high-performing terminal into a major point of friction. Seasonal peaks in consumer demand often test the limits of the existing infrastructure.
When one link in the chain stops moving, the preceding links quickly become overfilled.
Chain Disruption
Inventory builds up in places where it cannot be easily moved or stored. Costs increase as shippers pay for storage and seek alternative paths for their cargo. Manufacturers may be forced to slow down production if raw materials are stuck in transit.
Visibility tools help managers identify where the slowdown is occurring before it becomes a crisis. Solving the problem often requires capital investment in more space or better technology. Rerouting cargo to less busy ports is a common strategy for avoiding known areas of heavy congestion.