The Recession is over! Well, that is what we are being told. The truth is that it probably is over … however … this one is different, there hasn’t been a marked bounce-back in demand, unemployment is still growing, growth is slow and inventory pipelines are still being choked.
For the 3PL industry the trends evident in this ‘recovery’ are frightening. Inventory, the lifeblood of our industry, is still being constrained, and will continue to be. According to a recent CAP Gemini study 48%of supplier companies are pursuing inventory optimization projects, 45% are adopting new supply chain projects and 44% are looking to improve long term forecasting and planning of inventory levels. Their objective is universally the same, to grow their business out of the recession, without building inventory levels back to pre-recession levels.
What is your opinion on the recession ?