Financial pressures demand innovative thinking

The need for innovative supply
chain solutions that reduce
and ultimately eliminate waste
throughout the supply chain is now
more critical than ever, says Cargocare
director Sue Wood.
“It was clear from the end of the
first quarter that the challenge for
2010 would be predominantly a
financial one,” says Wood. “Despite
the many other key issues set to
challenge the logistics business in the
next five years, the financial pressure
seems to be creating a logistical
environment that lends itself to the
rapid development of supply chain
initiatives.”
On the one hand you see service
providers across the board taking
extreme measures to try to improve
on profits lost last year, while on
the other there’s increasing price
sensitivity from consumers, Wood
points out.
“Clearly the strains brought to
bear on carriers during the recent
strikes locally have put a damper
on the upward business trend,
bringing threats of rate increases and
surcharges both locally and globally.”