Date Added: May 2010
As companies struggle to cope with the uncertain global economy in 2010, nurturing resilient supply chains is vital for survival. Companies must stay efficient to generate healthy cash flows, and agile enough to jump-start production and keep customers satisfied as demand rebounds. Even if the recovery proceeds more slowly than expected, companies cannot afford to sacrifice resilience - the ability to recover quickly from disruptions - for the sake of efficiency. To survive the recession, companies were forced to hoard working capital. They slashed inventories, idled production facilities, laid off employees, negotiated more favorable deals with suppliers and transportation providers, outsourced more supply-chain functions and found other cost efficiencies wherever possible. They also stayed on alert for potential disruptions should key suppliers fail.