Certainly we expect the new president to favor legislation protecting consumers as well as incentives to reduce job losses to low-cost manufacturing countries. But it is not clear how much of an effect he will be able to have, at least in the short term. We do expect to see significant investments in infrastructure/public works projects and a continuation, for now, of recent defense spending levels.
With new crises seemingly emerging weekly, risk management has taken on a new urgency. Leading companies recognize the importance of a solid supply chain risk discipline, but grapple with scope, ownership, metrics, and ties to other types of strategic and operational risks facing the business.
The election of Barack Obama in the United States, the repercussions of the global "financial bailout" and a potential increase in environmental regulations will affect supply chain operations at multiple levels. The ability to quickly monitor and absorb these changes in supply chain structures will be the main agenda for 2009.
2009 is certainly shaping up to be a difficult year for manufacturers. Tight credit markets, poor consumer confidence and retail sales, along with low manufacturing activity, suggests that overall supply chain investment activity will be reduced and cost-savings activities will be prioritized.
If history is our guide, sales of food and beverage products will rise in the economic downturn. Food staples (cereal, bread, milk) along with convenience meals will gain volume as more families eat at home. It appears that 2009 is a time for food and beverage manufacturers to create big brands in big economies.
The green imperative is expanding into virtually all walks of life and all facets of the economy. Demonstrating green credentials is increasingly a minimal stakeholder expectation and business risk management factor, and is shifting from an order-winning to an order-qualifying attribute. Swallow that carbon pill! A whole swath of additional environmental expectations may well be just around the corner, as well as a whole new way of looking at "green" and the environment.
For the last three years global corporations have added "green" and "sustainability" to the supply chain agenda, in particular with respect to climate change and carbon footprint reductions. This trend coincided with unprecedented economic growth and record-breaking energy prices. With recession looming, supply chains will face their true commitment to the environment as they adjust operations.
For those who maintain that companies have no business getting involved with responsibility-driven endeavors because, after all, "the business of business is business" there is often a lack of awareness of the business benefits-and practical imperatives-associated with responsibility-driven endeavors. Likewise, critics who point out that it is only for shameless cost or reputation-related motives that companies adopt responsibility-driven platforms often fail to acknowledge the many positive social and environmental outcomes even of initiatives with top or bottom line-driven goals. Case study interviews with firms of all sizes indicate that these critiques illuminate an outmoded way of understanding the social, economic, and environmental imperatives of this historic moment.
To be honest, I'm a bit "greened out" at the moment. I feel like I did a few years ago, when RFID was all the rage. The first few months of RFID were exciting, learning about the technology and listening to executives at Walmart, Gillette (now P&G), and other early adopters talk about their ambitious plans. But as the months went by, there were fewer and fewer new developments to discuss or analyze. Every conference had the same set of speakers, and all the case studies (what few there were) started to sound the same. I think we've reached a similar plateau with green supply chain management.
The latest news, analysis, trends and solutions for sustainability and corporate social responsibility (CSR) and their impact on supply chain management. New customer expectations for green and ethical products and practices are transforming the way companies do business — and requiring more supply chain transparency than ever before. As solutions continue to evolve, businesses are discovering new ways to increase efficiency and cut costs. Learn how companies around the world are leveraging sustainability and CSR to stay ahead of the competition in their industries.
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