The consequences of the recent fi nancial crisis are both farreaching and
unpredictable. Despite the recent recovery there is still a high degree of
uncertainty and caution about whether this is sustainable, particularly in
the light of high levels of sovereign debt around the world. The fact that
the “unthinkable can happen” has severely undermined the confi dence of
central bankers, authorities, and of course, the consumer. In the past few
months, chemical companies have focused on cash, and inventories were
reduced to a point where they were no longer sustainable. Destocking and
volatile demand can lead to a bullwhip effect through the supply chain,
causing supply interruptions and a general expediting and service level
deterioration, and there is evidence of this already happening. Lack of
visibility on the channel and end markets will further complicate the
situation. “The industry is not suffi ciently using its insight in their
customers’ business, with poor coordination between sales and operation
planning (volumes and quantities) and financial planning on the other
hand”. Deloitte
So with the memory of the recent recession uppermost in their mind, some 70
senior supply chain executives from Producers, Logistics Service Suppliers,
Consultants and Industry Associations gathered in Frankfurt on March 2-3 to
discuss the themes of “Coming Out of the Economic Downturn” and “Green
Supply Demand Chains”.
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