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Recession forces supply chain change

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Recession forces supply chain change

Tuesday, 12/5/2009 05:42
The recession has led many to be open to radical supply chain alterations, an expert has said.

Chief executive of Ceva Logisitcs, John Pattullo, has told International Freighting Weekly (IFW) that industrial sectors are keen to look at new supply chain management systems due to a slowdown in revenue.

"What we are seeing is customers being much more open to radical supply chain re-engineerring," he said.

"Driven by the current difficult times, they are much more willing to look at breakthrough-type options."

Outsourcing was becoming particularly popular, he said, with many now opting to make "big leaps" in the area.

Some industrial clients of his have seen revenues decline by as much as 80 per cent, which is forcing them to rethink the way in which they approach their supply chain management issues.

When sales are growing, priorities of companies are often elsewhere, IFW claimed, but now that cost saving is a priority, many are much more focused on the issue.

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