Upturn predicted for global supply chains

When the Icelandic volcano erupted earlier this year, a significant portion of Europe’s air space was shut down by ash, and the world’s eyes were on the airline industry. Less noticed was the impact on global supply chains; one volcano highlighted how tightly integrated global supply chains are around the world writes Anil Khurana, Director of PRTM Management Consultants.

On a larger, more significant and drawn out scale, the global economic crisis of 2008 and 2009 provided significant disruptions and high demand volatility in supply chains for companies across many industries. In a number of sectors, demand and supply almost came to a halt, forcing companies to enact short-term measures to tightly manage inventories, costs, and cash flow. Khurana compares this with early 2010. As the global economy continues to recover, most of the companies now believe there will be a significant upturn in demand from their customer base as well as a significant increase in company profitability over the next few years.

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