What we have seen this year, and what we have heard pretty much across many industries, is that there are no capital budgets left for this year. They’ve been capped, or in more cases than not, they have just been cut off. As a result, we are finding executives have operating budgets, but they have no Cap X budget to spend or invest in new upgrades for their supply chain.
With the downturn in the market, super-sizing has slowed down. This is really a year to pause, breathe and catch up. Now we can optimize the supply chain rather than super-size the supply chain. Without capital budgets, we are seeing a couple things:
- Project Approval Process Changes
- No Technology Spending
- Funding from Existing Operating Budgets
- Inventory Reductions Gone Too Far
- Bundled Initiatives and Contract Re-Negotiations
- Outsourcing of Day-to-day Activities
Read Full Article Here (Parts 1 to 3)...
PDF version
No capital budget? How will you improve your supply chain now? (PDF)
