The recession has hit supply chains hard. Over the last decade or so it seems like everyone joined the supply chain “bandwagon” to optimize their supply chains. Supply chains were optimized significantly resulting in reduced inventories, faster order-ship-fulfillment times, and minimum stock outages. Now a recession comes along and what is a supply chain suppose to do?
Recession! Let Slip the Dogs of War |
Survival: The Measure of Supply Chain Success in a Recession. I think the number one priority for a supply chain to do in a recession is to survive. I am not saying this in a negative sense. Business survival is the key goal when there is a downturn in the business cycle. When many competitors do not survive a recession, the measure of a successful business is survival. As Andy Grove says, “Only the Paranoid Survive”. This is so true for any supply chain professional during a recession.
Recession Havoc. Recessions play havoc on a supply chain. I am reminded of a quote from Shakespeare’s play, Julius Caesar. It states, “Cry ‘Havoc!’ and let slip the dogs of war”. A recession is like a pack of war dogs doing their best to tear up your supply chain. If your supply chain can continue to operate in this type of environment, it is a success. It may not look pretty, there may be many surprises, and even disappointments, but it endures while other supply chains get chewed up by recession havoc.
Supply Chains Optimized for Good and Bad Times. Having a “lean and mean” supply chain with complete “dashboard” visibility is a beautiful thing in good times. Just having your supply chain continue to function in a recession is even a more wonderful thing. When the recession is over, we can all take lessons-learned to better optimize our supply chain, add redundancy, and reduce risk before we go through the next business downturn. In the meantime, we can take satisfaction that our supply chains are working and supporting the business and the end-customer.
Tags: supply chain