Making Sense of Logistics
Supply chains under pressure to maintain expenditure

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Supply chains under pressure to maintain expenditure

Sunday, 01/2/2009 09:22
Supply chain managers are under pressure to ensure their organisations' supply chains are as green as possible despite companies tightening their fiscal belts, the Chartered Institute of Purchasing and Supply (Cips) has said.

The temptation among businesses suffering from the recession to cut costs in areas which do not deliver immediate benefits could lead to companies losing out in the long term, and Cips has argued that companies should not be lured into making quick savings.

"Organisations need to realise that being commercial and sustainable go hand in hand," read the Cips report, 'Balancing commercial and sustainable issues'.

"Buyers need to champion the need for organisations to consider the total value of a product rather than the price paid."

The report comes as supply chains are being moved closer to the centre of business' operations as companies attempt to cut costs wherever possible.

Those companies who would like to make the most of the chance to improve a supply chain may benefit from contracting a supply chain management company.

The experience and contacts owned by a supply chain management company could ensure that contracting a third-party company to handle a supply chain could lead to a much more efficient chain than that which could be achieved by an in-house team.

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