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.”