Logistics Business: Lessons learned by recent recession

The global economic crisis of 2008 and 2009 provided significant disruptions and high demand volatility in supply chains for companies across many industries, said PRTM director, Rick Hoole. Speaking at the 2010 Supply Chain Council Executive Summit in Houston last week, he said that the degree to which companies can capture benefit from an eventual upturn will depend largely on how they deal with five key supply chain challenges.

By ·

The global economic crisis of 2008 and 2009 provided significant disruptions and high demand volatility in supply chains for companies across many industries, said PRTM director, Rick Hoole.

Speaking at the 2010 Supply Chain Council Executive Summit in Houston last week, he said that the degree to which companies can capture benefit from an eventual upturn will depend largely on how they deal with five key supply chain challenges.

“We find that above average performers are more likely to document their process,” he observed.
PRTM’s annual survey, “Global Supply Chain Trends,” was also distributed at the executive summit. It found that in a number of sectors, demand and supply almost came to a halt, forcing companies to enact short-term measures to tightly manage inventories, costs, and cash flow.

“Compare this with early 2010, noted the report’s authors, Dr. Reinhad Geissbauer and Michael D’heur. “As the global economy continues to recover, most of the companies surveyed now believe there will be a significant upturn in demand from their customer base as well as a significant increase in company profi tability over the next few years.”

However, caution the authors, this widespread optimism may be premature.

“Our findings indicate that many companies lack the capabilities critical for meeting growing demand or for managing an increasingly complex and global supply chain,” they said.

Hoole agreed that, driven by short-term exigencies, many companies did not strengthen critical capabilities during the recession:

“Only a small percentage truly improved supply chain flexibility and processes needed both to capture an increase in demand and to better manage high volatility.”


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Reduce Order Processing Costs by 80%
Sales order automation software will seamlessly transform inbound emailed and printed purchase orders into electronic sales orders that can be automatically processed into your ERP system with 100% accuracy.
Download Today!
From the June 2016 Issue
In the wildly unstable ocean cargo carrier arena, three major consortia are fighting for market share, with some players simply hanging on for survival. Meanwhile, shippers may expect deployment shifts as a consequence of the Panama Canal expansion.
WMS Update: What do we need to run a WMS?
Supply Chain Software Convergence: Synchronization Realized
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Optimizing Global Transportation: How NVOCCs Can Use Technology to Operate More Profitably
Global transportation isn't getting any easier to manage, especially for non-vessel operating common carriers (NVOCCs). Faced with uncertainties like surcharges—but needing to remain competitive when bidding against other providers—NVOCCs need the right mix of historical data, data intelligence, and technology support to make quick and effective decisions. During this webcast you'll learn how Bolloré Transport & Logistics was able to streamline its global logistics and automate contract management.
Register Today!
EDITORS' PICKS
Details Key to Cross-border Ease
Ever-changing regulations are making it risky for U.S. companies engaged in cross-border trade...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo