Aceona supply chain management

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January 13th, 2009

Welcome to the Aceona Discussion Forum

Firstly, on behalf of all at Aceona Management we wish all our website visitors a very happy and prosperous 2009.

To be fair the year hasn’t exactly got off to a cheery start with newspapers seemingly jammed with tales of woe, business failures and umpteen thousand heading for the dole queue. It’s difficult for most of us to comprehend exactly what has happened to bring us to this particular juncture; once proud companies, household names for many years, brought crashing down whilst others hang in there by the skin of their teeth. The scale and speed of this economic downturn has indeed caught many on the hop and struggling to understand how to extricate themselves or where to go next: the banks have put up their shutters and the ready and easy credit of only a few months ago has dried up with disastrous consequences for many businesses; sales have crashed and costs continue in an upward direction.

But is it all gloom and doom or has somebody fired the starting pistol on what is undoubtedly a challenging but exciting race? Personally I would suggest the latter; UK plc is placed smack bang in a window of opportunity the likes of which we may not see for a long time – if ever again. It’s not just the UK that’s nursing severe economic bruises or feeling the chill winds of recession, so doesn’t that suggest an opportunity for the economy that looks beyond the here and now and positions itself to reap the rewards of the future?

The simple fact is that British businesses DO have an opportunity. Being supply chain managers we readily subscribe to the view that the supply chain is THE competitive element for the vast majority of manufacturing and retail businesses: the revenue from of a tin of beans may be reasonably fixed in terms of what shoppers are willing to pay, but the cost of getting that tin onto the shelf in the first place is another world for those willing to look carefully and be prepared to do things differently in order to maximise returns and/or reduce dependency on the banks.

The snag really lies in the high proportion of British managers who are unwilling to contemplate change: far too many sit back in their comfort zones or bury their heads in a bucket of sand and pray that when they emerge the sun will be shining and everything will be fine and dandy, just as it was before the storm clouds appeared. I think they need to wake up; it really is change or die.

Could we be heading for an era where the small business is king – flexible, lean, cost and service focussed and able to take on the big boys in key market areas? In some respects it’s very much like comparing a small speedboat with a supertanker, one turning on a sixpence and the other lumbering on for miles before anything happens. I remember the tale of the “Turbinia” – the small craft wrapped around Charles Parsons’ steam turbine engine which ran rings around the British fleet at Spithead just before the First World War much to the chagrin of empurpled admirals ….. but the turbine won the day and it wasn’t long before that method of marine propulsion was the norm.

There is a significant overlap between this tale and the modern supply chain.

Over the coming months we’d like to open our website to debate and to offer advice and suggestions as to how companies can replicate the good old “Turbinia” and become much more agile to face the challenges ahead of us. We’ll be talking about how the 4PL offer can reduce costs (and our customers will readily testify to the savings and efficiency improvements they enjoy) and how the 5PL offer will usher in even greater economic advantage for UK industry. So please send in your comments and questions and we’ll do our best to answer them as quickly as possible.

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The Author

Jeff Screeton MBA CMILT is the
co-founder of Aceona Management with over 30 years spent in the transport industry in shipping, road haulage and rail freight.
He is an active member of the Chartered Institute of Logistics & Transport and sits on the East Midlands regional committee

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