Are You Ready for Economic Recovery?

If you took a survey of business, you would be hard pressed to find a company that is not eagerly anticipating the recovery of the market. With market change, there is opportunity, but at the same time risk looms for the unprepared. Our sustainability consulting is asking the business sustainability question: Are you ready?

According to a recent Business Week article, many companies are restocking shelves in anticipation of growth beginning in 2010. This accelerating business activity in the supply chain is creating opportunity for some and stress for others.

The economically driven business actions over the past two years dramatically reduced inventories in the supply chain. At the time, these cuts were, for many, a stay-in-business strategy. However as the market turns towards recovery, this same business sustainability decision may be creating supply chain risk.

In 2008 and 2009, many companies took drastic measures to address the financial pressures their organizations were facing in the uncertain economic times. We observed many companies taking actions to reduce cost and free up cash to offset reductions in sales. With now empty shelves and depleted supply, more reactive organization are facing real competitive pressure in a shifting market.

Our professional consulting views the financial recovery as a new platform for companies to reevaluate their business sustainability strategies, specifically the value of long-term sustainable supply chain management. Leader in the space are:

•    Developing strategies focused on process improvements to maintain optimum inventory levels and increase transaction inefficiencies.

•    Designing integrated management systems to align supply incentives and enable sustainability as a key component of supply chain management.

•    Implementing a continuous improvement culture with sustainability engrained across the supply chain.

•    Actively engaging stakeholders to determine the interests of key supply relationships.

Determining the criteria that will prepare an organization for economic recovery and ultimately move it along the business sustainability scale has become a focus of our sustainability consulting and many leading supply chain actions in the business world.