As we transition from recession to recovery, many companies are shifting from a singular focus on efficiency to a more balanced approach that prepares for accelerating growth, while still preserving the productivity gains achieved in the last few years. Supply chains are at the heart of that approach.
Successful companies today recognize that the supply chain is a competitive weapon. Inventory reduction, globalization, and outsourcing are trends the recession accelerated. Companies that successfully navigated through the downturn also face growth pressures around speed to market, product complexity, increased technology needs and sustainability. At the same time, concerns about future capacity constraints, in part due to anticipated regulatory changes, loom large in 2011.
Shippers and transportation providers will face plenty of challenges this year as they try to see through the uncertainty, stay focused on their business in the short term and keep an eye on long-term opportunities.
One core challenge every company faces is how to adapt to changes in the marketplace quicker than their competitors while retaining enough stability in its own culture, processes and business model to be effective and add value.
While every company makes unique decisions around these issues, increased demand for flexible, high service, variable cost approaches to logistics are a reflection of the increased volatility of our times. Change is happening faster than ever, creating more challenge and opportunity for effective business decisions.