Where is Your Supply Chain Headed in 2010?

Has economically driven business actions over the past two years permanently affected the direction of the supply chain or will the coming financial recovery create a new platform for more sustainable supply chain management? These are just two of the questions our clients are currently asking and taking proactive action to address.

In 2008 and 2009, many companies took drastic measures to address the financial pressures their organizations were facing in the uncertain economic times. Specific to the supply chain, our professional consulting observed many companies taking actions that were not necessarily aligned with long-term business sustainability.

By this we mean that many actions, while essential to survival at the time, were reactive and often at the expense of the company’s business relationships and the company’s future success. From our sustainability consulting perspective, these necessary actions at the time were a deviation from building strong, stable and sustainable supply chain.

Supported by a recent Supply Chain Digest article, we found many companies at the time:

•    Cutting spending to levels that made supplier health questionable.
•    Pushing inventories and stock burdens back into the supply chain.
•    Decreasing spending on supply chain technology.
•    Discontinuing supplier performance measures.
•    Pulling resources from supplier development and process efficiencies efforts.

Going into 2010, questions still remain on the timing of a recovery and the direction of business sustainability action within the supply chain. However, we do see a few early movers taking action to turn the tide. What direction is your supply chain headed this year?

At Taiga Company, our sustainability consulting resources are here to assist companies interested in sustainable supply chain improvements that increase eco awareness and drive sustainable progress and development.