Warehouse Management a73 Opinion
Invest
Invest to say ahead
Investing in IT makes sound economic sense in an economic downturn,
writes Tony Beales, supply chain director, BCP.
ith the economy more flexible in terms of resource and access to external funds Good systems:
W
struggling and availability, so that projects can limited. Good IT systems deliver Work in days – report stock
tough times be done more quickly and hence a big ROI here, helping you to levels in days, based on
upon us, the more cheaply. minimise stock investment while current sales forecasts, and
temptation maximising customer service. take lead times and re-order
can be to postpone capital intervals into consideration
investment and ignore technology
Thriving in a downturn
when calculating re-order
improvements in the short quantities.
to medium term. However, Here are just some examples
experience shows that controlling of how intelligent IT can help Think ahead – basing re-order
costs and improving efficiency companies not only survive, but quantities on demand
are more critical at these times thrive in the current downturn, forecasts, not sales history,
and investing in appropriate as well as boost long-term with adaptive smoothing
technology can help companies performance when the economy algorithms to even out
do just that. If capital is available, regains stability: demand fluctuations.
a slower business environment
gives businesses the chance to Reduce Stocks to release working
review processes and prepare capital and maximise cash in Tony Beales: Those with a steady
for the upturn when it inevitably hand. This is more important than
nerve can reap dividends by
investing in the right technology.
comes. Suppliers may also be ever when the economy is slow
34
MANUFACTURING
&LOGISTICSIT March 2009
www.logisticsit.com
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