Jacky Gervis, Co-CEO, FM Logistic speaks on 'Managing the Downturn' at a session on The Economy: Get Ready for the Rebound at the 7th European 3PL Summit in Brussels, November 25th 2009.
To download all of the slides from the conference for free visit www.3PLsummit.com/eu_2009ppts
3. Business Cycle
The four parts of a
business cycle
Slow- Expan-
down sion
Business
Cycle
Down- Reco-
turn very
An entire cycle generally
lasts from 2 to 10 years
Source: NY Times and OECD
5. Entering the recession
Set up of the company
— Investment strategy
— Lifecycle stage
— Business portfolio (Geographic,
Industries, Customers, Suppliers)
Early Identification & Planning
— Lookout for signs of downturn
— Planning “what if” scenarios
— Know the conditions and apply the
right amount of “brakes”
7. Managing the curve
Recognize the signs early enough
Have a Comprehensive Plan
—Plan for worst case scenario
—Systematic communication approach
—Boost the people
Work with government and labor organizations
—Implement flexible working hours
—Short-time work
Government
—Avoid redundancies now /
and re-training costs later
Be with your customers Agility Employee
Competitors hyper-aggressive
Resist the inward focus
9. Accelerating out of the curve
“Even though from a technical
perspective the recession is very likely
over at this point, it’s still going to feel
like a very weak economy for some
time,” FED Chairman Ben S. Bernanke
“The world economy is stabilizing,
helped by unprecedented
macroeconomic and financial policy
support. However, the recession is not
over and the recovery is likely to be
sluggish.” IMF World Economic Outlook Update
11. What are we learning from this and prior crises?
Keep strategic initiatives going
— Focus on long term profitability and
growth
— Avoid short term thinking
Keep balanced portfolio with diversified
exposure to the various industry sectors
Close cooperation with customers and
suppliers is essential
Work with governments and labor
representatives to find innovative solutions
Prepare for the next one!
— Analyze what worked and what didn’t
— Know what “car” you are driving
— Management is art, not science
12. Thank you for your time
Beat Simon CEO Agility Europe
St. Jakobsstrasse 220
4002 Basel
Switzerland
www.agilitylogistics.com