With international trade and domestic manufacturing making front page headlines on a regular basis, many business leaders want to learn more about the health of their existing supply chain services providers. Likewise, companies that used to handle logistics management in-house increasingly look for expert help to cut expenses and increase profits. Industry experts offer five key activities that supply chain services companies should be pursuing to stay healthy under current economic conditions.

Forming Logistics Management Alliances

When manufacturers and retailers curtail shipments, business at supply chain services companies can dry up quickly. Furthermore, the current credit crunch may prevent many of the industrys major players from pursuing mergers and company acquisitions. Instead, industry analysts observe that the most productive companies in the logistics management sector tend to form loose alliances with non-overlapping competitors. Alliance members can share technology, strategy, and even physical resources. Instead of allowing facilities and teams to remain idle, smart managers have coupled their operations together to stay busy during the downturn.

Focusing on Supply Chain Services Efficiency

Though logistics management professionals typically focus on efficiency, a business slowdown gives leaders the opportunity to dig even deeper into their operations. For some companies, this means investing in training and in new technology installations during a time when these initiatives will not interfere with client operations. At other companies, striving for greater efficiency can lead to breakthroughs around changing workflows, reorganizing workspaces, or shifting responsibilities among teams and facilities to better match the needs of clients.

Diversifying Logistics Management Clients
Logistics management companies that specialize in working with automotive manufacturers are among the hardest hit by the current recession. In some cases, two-thirds of a companys contracts have been suspended or cancelled, pending a revitalization of the auto industry. The strongest supply chain services companies have discovered ways to diversify their client bases, making them less susceptible to major changes to a single industry or client.

Helping Clients Review Sourcing and Supply Chains

During periods of economic volatility, the clients of supply chain services companies may have concerns about their suppliers, or even their suppliers suppliers. When those concerns arise, savvy managers at logistics management companies can provide consulting and analysis services. By helping clients review all of their sourcing options, supply chain services specialists can help prevent the kind of business interruption caused by corporate bankruptcy, shipping piracy, or product failure.

Finding Logistics Management Hot Spots

Most of all, smart logistics management professionals use an economic downturn to identify their companies biggest strengths. Shining a spotlight on the people and the projects enjoying the most success can hint at the kind of direction a company will take to continue its growth. Celebrating areas of the company that succeed in spite of a recession can inspire teams to improve their own results, especially by enhancing service rendered to clients.

Although news reports tend to focus on the negative impact of the recession, strong business leaders can use tough times to build effective teams. Prospective clients of logistics management companies should see how vendors operate under this kind of pressure to determine whether they are the right fit for their companies.

Sources

Infosysblogs.com

The Journal of Commerce

Materials Handling World Magazine