The Good News: Recession's Almost Over! The Bad News: The Recovery Could be Just as Risky.

The Good News: Recession’s Almost Over! The Bad News: The Recovery Could be Just as Risky.

October 13, 2009, 12:31 pm

Although analysts are reporting that economic recovery is just around the corner, there are still significant risks associated with this recovery. Companies who have laid off employees and reduced spending in areas such as IT investment will face a tough road ahead. In a recent study done by AMR Research, 44 percent of executives surveyed believe the biggest risk in 2010 will be recovering from the recession.

According to the study:

Respondents said they believe the recovery cycle is the biggest risk in 2010 because of potential commodity price increases, limited internal skills after workforce reductions, and problems meeting new demand with constrained capacity, low inventory and transportation constraints.

This re-enforces a point we’ve been trying to make here over the past few months – although many organizations may be facing major budget cuts across the board, IT spending, specifically in the supply chain, is one area that you cannot afford to make cuts in. Using a technology solution to ensure near real-time visibility into the status of orders, shipments and in-transit inventory can help save you money by avoiding expensive expedited shipments, reducing fees associated with detention, demurrage and per diem.

Free Analyst Report: For more tips on how technology can help you achieve optimal supply chain performance, please read this Global Supply Chain Benchmark report from the AberdeenGroup.