Q: What were the most important SCM market trends in 2009?
A: Supply chain has never been a higher priority. For several of our clients, a strategic assessment of the supply chain has become one of their top two priorities. When the whole downturn happened and liquidity became such a huge deal, it became critically important for manufacturers, in the midst of hugely falling demand, to be as strategic as they could in managing their inventory levels, their production levels, and distribution. The reality is the world has changed. The old structure of where they manufactured, what they manufactured, where they distributed from, where their customers were is changing dramatically.
Q: What surprised you the most in 2009?
A: For the first time I’m hearing a lot about the concept of understanding supply chain risk … More and more, we’re encouraging manufacturers to understand the viability of their suppliers. There’s been such a big focus on cost reduction the past three to five years. For many companies, that meant sole-sourcing products. The challenge is that the [sole-source] supplier may not weather this downturn. We’re seeing companies trying to understand the viability of their current suppliers and having a backup supplier or two.