2013 will see an adapting supply chain

London, UK: The struggling European economy has inevitably seen the supply chain industry have to adapt during 2012 – a theme that will continue into 2013 according to supply chain consultancy Crimson & Co.

Richard Powell, managing director at Crimson & Co, says the poor economy in 2012 has changed the way the supply chain does business. “The economic climate has continued to drive an emphasis on ‘price reduction’ from suppliers to an extreme. The result has been that relationships are confrontational and actually work against collaboration rather than towards co-operation.
 
“Against this cost cutting background, businesses are still being asked to respond to the ever increasing pace of innovation. Innovation is vital for sales, and businesses are trying to find ways to manage the complexity this creates.”
 
Powell says that the natural disasters of recent years still weighed heavy on the mind of supply chain professionals with companies exploring sourcing options more actively, with risk management being a bigger factor than previously. 2012 also saw more companies look at their logistics operations and how they can get money out of it. This is especially true for high margin sectors such as pharmaceuticals and energy.
 
“As we look to next year, supply chain dynamics will change,” Powell says. As the Euro crisis continues, even smaller European companies are starting to look wider for markets outside Europe. Adapting from a relatively local supply chain to an international supply chain will be commonplace, presenting new challenges.
 
“As markets become more segmented and product lifestyles shorten, businesses need to ensure the benefits of managing at a regional or global level are balanced against the local requirements. Powell comments: “Customer demands are getting more complex and ‘one size fits all’ does not give competitive benefit. Those tailoring their chains will see a successful 2013.”
 
Most businesses will be affected by substantial currency challenges, commodity fluctuations, political instability and likelihood of natural disasters. “Boardroom thinking needs to change to put risk management and continuity higher up the agenda, and to take a holistic view of the supply chain rather than just looking at the headline purchase cost,” he says.

WORLD NEWS

Registration open for 22nd GCCA European Cold Chain Conference

Brussels, Belgium: Registration is now open for the 22nd GCCA European Cold Chain Conference, taking place 20-22 March 2019 in Brussels, Belgium. Hosted by the Global Cold Chain Alliance …

READ THE FULL STORY >

Temperature controlled logistics in biopharmaceuticals

Milan, Italy: The 15th Annual Temperature Controlled Logistics in Biopharmaceuticals returns to Milan. The largest European clinical and commercial pharmaceutical supply chain will bring together …

READ THE FULL STORY >

ContainerLine magazine is now available

Singapore: The latest edition of Carrier Transicold’s ContainerLine magazine is available on line. The current issue includes news about shipping line MSC’s addition of 5,000 …

READ THE FULL STORY >

Krone reports sales over €2bn

Werlte, Germany: Krone Group has reported record turnover of €2.1bn for the year ending July 2018 up on the previous year of €1.9bn. Over two …

READ THE FULL STORY >

WHAT’S ON

Latest Tweets

20th Clinical Trial Supply Europe conference set for Milan: bit.ly/2MiJhWC

© 2019 Global Cold Chain News | Terms of use | Privacy Policy
Commercial Transport Publishing Limited, registered in England and Wales, Company No: 6453302. Registered Office: 6 Corunna Court, Corunna Road, Warwick CV34 5HQ