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
The Cloud Supply Chain Data Network
Understanding the Power of a Shared Online Network to Connect Global Partners and Achieve High Data Quality Levels
Download Today!
From the November 2016 Issue
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL) provider that could successfully combine transportation services and technology capabilities under one roof.
Warehouse & DC Operations Survey: Ready to confront complexity
2016 Quest for Quality Awards Dinner
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Digital Evolution: Streamlining Logistics and Supply Chain Operations
In this FREE virtual conference we'll define the challenges facing operations and offer solutions designed to create dynamic, automated networks that offer seamless communication, improved collaborative third-party relationships, and the ability to respond to changes at a moment's notice.
Register Today!
EDITORS' PICKS
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....

25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...