WDC Special Report: Three ways to prepare for growth, while containing costs
October 08, 2010 - LM Editorial
Economic conditions may be much improved from the dismal depths from which they emerged, but we’re not quite out of the woods yet. A status quo of high unemployment, sagging consumer demand, and lingering financial constraints has kept controlling costs the prevailing theme in warehouse and distribution management.
As Vice President of IT Business Systems for Tommy Hilfiger USA, Inc. and president of the Council of Supply Chain Management Professionals (CSCMP), Bob Silverman says he’s seeing this scenario play out firsthand. “The recession has forced companies to do more with less, and often capital isn’t available,” he says. “Even when a solid ROI can be demonstrated with a project that would improve distribution operations, the project sponsor can’t get it funded.”
Ann Elliott, CEO of Solertis Logistics Consulting, agrees that money remains tight across the board. “Many operations have been challenged to perform with fewer people and a smaller payroll.” Unfortunately, a smaller team can sometimes compromise the ability for a company to provide the highest levels of service that customers have been expecting.
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