SUPPLY CHAIN STANDARD NOVEMBER 2008
www.supplychainstandard.com
www.supplychainstandard.com
50 Poland Street, London W1F 7AX Tel 020 7970 then 4-digit extension Fax 020 7970 4119 ● Editor Malory Davies FCILT (4100) malory.davies@centaur.co.uk ● Reporter Jessica Davies (4184) jessica.davies@centaur.co.uk
● Reporter Lucy Tesseras (4813) lucy.tesseras@centaur.co.uk ●Contributing Editor, Supply Chain Nick Allen (01444 467 307) nick.allen@supplychainintelligence.co.uk ●Contributing Editor Property Liza Helps (01449 673 952) mesquita@tinyworld.co.uk
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Supply Chain Standard is published by Centaur Media plc. The views expressed by contributors and correspondents are their own and responsibility for the contents of the magazine rests solely with the editor. Copyright 2008
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Agility is key
Anewspaper headline last month announced that the
International Monetary Fund had come up with a £15.6
billion loan to stop Hungary’s economy collapsing. Not
long ago that would have been shocking — not any more. We
are getting used to such things following Iceland. And it looks
as though the Ukraine, Pakistan and Belarus could be next on a
growing list of countries that will need support.
The credit crunch, which started as a problem in the US
housing market, is now disrupting economic activity around
the world.
And the impact on supply chains is becoming increasingly
apparent. The price of oil has halved over the past few weeks
which should now be feeding through into lower prices at
the pumps. But this is a reflection of falling demand as
economic activity slows.
There have been a number of announcements of cutbacks in
the production industries — notably the motor industry — as
companies seek to align production to demand. The latest
move comes from Ford which has decided on a series of
temporary lay-offs at its Brigend engine plant in December.
So it is not surprising that there are now reports that bulk
freight traffic is falling rapidly as demand for raw materials
falls. This is hitting bulk shipping rates and putting pressure
on shipowners. This is particularly serious for Greece which
accounts for about one third of the world’s bulk vessels.
Supply chain strategies based on last year’s assumptions will
come under increasing strain. In these conditions, agility is
key to staying one step ahead of the market.
MALORY DAVIES FCILT
EDITOR
SCS:CONTENTS 03
NEWS ANALYSIS 4
VIEWPOINT:
Penelope Ody,
John Lamb 6
FEATURE:
Retail 12
Supply chains to cope with
the credit crunch.
FEATURE:
Planning 14
Detailed planning and supply
chain optimisation are going
to be crucial factors in
maintaining commercial and
financial performance.
FEATURE:
Data synchronisation 20
A grand project is underway
to create a Global Data
Synchronisation Network, its
success depends upon global
co-operation between
manufacturers and retailers.
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