Top Five Economic Recovery Planning Tips

Sept. 11, 2009
Be prepared to take on new business

When the federal government's "Cash for Clunkers" program was in full swing this summer, automakers realized they weren't quite prepared for such an increase in demand. For instance, Honda Motor Co. was forced to add overtime shifts in September because of dwindling inventories related to increasing sales. If economists are correct that the economy is in the recovery stages, manufacturers will need adequate inventory levels to meet customer requirements. Sunderesh Heragu, a professor in the University of Louisville's department of Industrial Engineering and director of the Logistics and Distribution Institute, says in preparation for an economic recovery, manufacturers should:

Sunderesh Heragu, Professor, University of Louisville, Department of Industrial Engineering and director of the Logistics and Distribution Institute

Be in close contact with major customers to gauge the timing and size of orders.
  • Assess the sourcing landscape to ensure required materials can be procured quickly from past (and new) suppliers.
  • Ensure processing capacity and labor are available and in top condition for production ramp up.
  • Maintain adequate inventory of Class A items.
  • Be prepared to take on new business because the number of manufacturers in your domain may have shrunk.
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    About the Author

    Jonathan Katz | Former Managing Editor

    Former Managing Editor Jon Katz covered leadership and strategy, tackling subjects such as lean manufacturing leadership, strategy development and deployment, corporate culture, corporate social responsibility, and growth strategies. As well, he provided news and analysis of successful companies in the chemical and energy industries, including oil and gas, renewable and alternative.

    Jon worked as an intern for IndustryWeek before serving as a reporter for The Morning Journal and then as an associate editor for Penton Media’s Supply Chain Technology News.

    Jon received his bachelor’s degree in Journalism from Kent State University and is a die-hard Cleveland sports fan.

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