Logistics and supply chain strategies in difficult times

Abstract

This paper reports and analyses the decisions taken by companies in managing their logistics and supply chain activities during the recent economic recession. This research investigated the perceptions of logistics and supply chain managers, and other logistics personnel, of the impact of the economic downturn on their organisations' management decisions. It has sought to understand the specific actions these organisations had taken in response to the adverse economic situation. The investigation took place over the period between November 2008 to June 2010 in three countries: UK, Poland, and Oman. Four rounds of questionnaire survey were carried out to collect data during this period using convenience sampling in which the researcher collected the responses in person, which resulted in a high response rate (over 60 percent). In total 309 questionnaires were collected and analysed. Respondents were mainly senior managers, and managers with logistics and supply chain responsibilities, who were working in companies across a wide range of business sectors in these three countries. The survey results suggested that in response to the weakened economy, while some companies reported little impact on their logistics and supply chain activities in the earlier months of the recession, others reported significant changes they had already made, or intended to make. The analysis compared respondents' perceptions with respect to contingency factors, such as time and industry sector. Detailed comparative analysis and research findings are presented in the paper. In addition, a range of specific comments from managers are examined in this paper. Findings from this research have practical implications that can help the companies surveyed, and a wider range of other businesses, to manage their logistics and supply chain operations more effectively in economically difficult times. The research, in addition, provides managers a reference for benchmarking their own decisions against - - those taken by other companies during the recent economic recession. It is hoped that these findings will pave the way for more comprehensive research about contingency logistics strategic changes which are implemented in response to changes in external environment in general.