MANAGING THE UPSWING

The path to recovery is far from clear, with many potential hurdles -- from tax increases to volatile energy prices -- that might stall fragile recoveries. For supply chain managers, this situation makes planning difficult. Pressure on supply costs remains intense, and many companies have yet to com...

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Bibliographic Details
Published in:Supply Chain Europe 2010-07, Vol.19 (4), p.10
Main Authors: Alicke, Knut, Minnich, Dennis
Format: Article
Language:English
Subjects:
Cost control
Cost reduction
Demand
Economic recovery
Inventory
Planning
Prediction markets
Recessions
Supply chains
Online Access:Get full text
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Summary:The path to recovery is far from clear, with many potential hurdles -- from tax increases to volatile energy prices -- that might stall fragile recoveries. For supply chain managers, this situation makes planning difficult. Pressure on supply costs remains intense, and many companies have yet to complete important cost reduction exercises. At the same time, companies need the flexibility to be able to respond as rapidly as possible to any upswing in demand, something that may be particularly difficult where aggressive inventory reduction has already run supply chains almost dry. A key risk that companies face as a downturn comes to an end is that cost cutting measures in the supply chain can damage a company's ability to respond to rising demand. Finally, companies can prepare themselves for an upswing by focusing on the skills and capabilities they will need when it arrives.
ISSN:1742-447X