Managing in a Meltdown

Jonathan Bernstein crisis manager, Crisis Prevention, Crisis Response

Published December 29, 2008 by William Hoffman, Managing in a Meltdown offers insight into shippers fears of unprecedented disruptions to supply chains.

Manufacturers and retailers are recognizing that coping with today’s economy requires attention to not only their own financial picture but also to that of their transportation and logistics partners as well As the global recession worsens, and the effort to keep operations moving, crisis management teams are being formed to prepare how to handle today’s economic environment and cope with both their financial situation and the financial circumstances of their transportation and logistics partners.

The changing requirements that some suppliers make, such as demanding cash for shipments that in previous years they offered on credit, are creating a tremendous pressure on companies that otherwise are seemingly healthy. This new credit environment is the reason some companies give for closing many of their stores.

Each business manages crisis response in its own way. Cisco Systems activated its crisis management team about two months ago. Cisco began testing every node and partner in its network that posed a significant risk of disruption. Cisco’s crisis management team is meeting with CFO’s and other executives of carriers, logistics providers, manufacturing sources, sales and customer service organizations to assure uninterrupted operations.

Crisis managers are warning that it is important to keep perspective and not overreact to the situation.

Jonathan Bernstein
President
Bernstein Crisis Management, Inc.