APICS Brandywine Valley Chapter President
The Wall Street Journal this week carried an article about the “Bullwhip Effect” that is coming as the economic recovery picks up steam. Does that seem far-fetched? Perhaps. For many folks the recovery is still a hoped-for gleam in the eye. But from a manufacturing standpoint, and Caterpillar in particular, this article makes a couple of key points:
- Most companies have downsized their inventories in a big way. So even if their sales stay the same in 2010, they will need to produce more just to maintain their inventory target at the new low level
- But some companies (eg, Caterpillar) are saying that it is time to begin their inventory build-up now, so they will be ready when their customers start to buy again at higher levels. For Tier 2 and Tier 3 suppliers, the impact will be even greater!!
So it is time for some courageous decisions. Does your company want to anticipate the recovery, and be there first when the orders pickup? Or will it follow a lag strategy, and miss out on the first months of increased orders. This is true all the way up the supply chain, and the bullwhip effect will become more than just an illustration in a CSCP course.
On another topic, please join us on Wednesday, Feb 10th at the Widener University Campus in Chester for our joint Professional Development Meeting with the Widener University Student Chapter. Not only will you be able to meet our future leaders of tomorrow, but also hear a leading-edge talk on using social networking media, such as “Linked-In”, to further your career, improve your ‘brand image’ and enhance your network and networking skills. In today’s world, none of us can be passive. This is a way to make yourself known among a wide-variety of people in many industries. And who knows, they may be potential employers at some point!! Rebecca Leyson, our speaker, is the President / Founder of RallyPoint Consulting and Co-Director of Career Services at Goldey-Beacom College. Visit our website for more information and registration.
Al Leigh CSCP, CPIM
President, Brandywine Valley Chapter