Supply chain strategies in difficult times

Abstract

This chapter examines the strategic decisions taken by supply chain managers during the current (post-2008) economic recession. The objective was to identify and understand the changes that companies had made, or planned to make, in their company supply chain strategy in response to this changing economic environment. A longitudinal approach was adopted, and a series of questionnaire survey rounds were carried out. Over 300 responses from three countries were received. The findings from the first two survey rounds indicated that only a limited number of companies had made significant changes to their supply chain strategies, but this number increased as the recession continued. While a common company response was to downsize the organisation, there were also other strategic changes such as changes in the use of third party logistics, in warehousing choices and in a move to more local suppliers. In the broader context, the results can contribute to the understanding of how companies evolve their supply chain strategies when dealing with a significant change in the external environment.