SUPPLY CHAIN STANDARD JULY/AUGUST 2009
www.supplychainstandard.com
Ihesitate to mention it, but the time is approaching when I have to
mention the “R” word. Not recession this time, but recovery. Some
green shoots are just beginning to make their very tentative
appearance. So while this is no time to be gung-ho, it might be time to
consider some of the issues associated with moving back into growth.
The most notable evidence comes from the Organisation for Economic
Co-operation and Development (OECD) which, last month suggested
that some western European economies were now in a “trough”.
That might not sound very encouraging, but in OECD-speak a
trough indicates that the figures have stopped going down and are
about to go up. The OECD uses a basket of measures which it
describes as composite leading indicators (CLIs) and this shows a
reduced pace of deterioration in most of the OECD economies “with
stronger signals of a possible trough in Canada, France, Italy
and the United Kingdom”.
The organisation is quick to hedge its bets, saying it is still too early
to assess whether it is a temporary or a more durable turning point.
And, of course, there are other possibilities. In some industries
production has been restarting following a period of destocking. And
it is still possible that there could be a further downturn – the socalled
“W” scenario.
Nevertheless, for supply chain executives, this all raises a whole
new range of scenarios to be planned for. Much of the focus over the
past few months has been resizing operations, managing cash and
supporting suppliers – and that is still going to be important. But
thought must also be given to the problems of growth.
Gordon Colborn of PRTM points out in this issue that the period
coming out of a recession can be particularly dangerous. Companies
that have been weakened by falling sales can run into serious cash
flow problems as they struggle to fund rising demand. It is all too easy
to bankrupt a business this way. Caution has to be the watchword.
www.supplychainstandard.com
Time for
caution
MALORY DAVIES FCILT
EDITOR
SCS:CONTENTS 03
VIEWPOINT:
Penelope Ody 4
AWARDS 6
Do the efforts of your supply
chain deserve recognition?
SPONSORED 8
FEATURE:
Simplifying global trade
and logistics.
In association with Kewill.
PROFILE: 10
Tim Scharwath
Kuehne + Nagel chief of North
West Europe on defining
strategies to cut costs for
customers.
FEATURE: 12
Fashionably flexible
Retailers need to keep on top of
fickle fashion trends and adapt
their supply chains
accordingly to thrive.
FEATURE: 14
Motivation in a
downturn
Managing an efficient and happy
workforce is vital. So in these
tough times, how do you keep
staff motivated for the task?
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 2009
by Centaur Media plc, St Giles House, 50 Poland Street, London W1F 7AX, UK. ISSN 0968 – 9001
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