Supplier Instability & Reduced Supply Chain Resources Are Key ‘Recession Hangovers’ for Senior EMC and Verifone Supply Chain Executives

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Patrick McGivern and Mike Madeleine discuss key issues facing hi-tech supply chains in the fallout of the recession.

The risk of supplier instability and working with reduced staff levels and resources were cited as key supply chain concerns facing Patrick McGivern, SVP Global Supply Chain at Verifone, and Mike Madeleine, Americas Freight and Logistics Manager, EMC Corporation.

“If organizations cut too close to the bone it is difficult to handle the up tick of the recovery,” Madeleine said in a Q&A with eyefortransport.

McGivern stressed that a key lesson from the recession was “understand[ing] your supply base, work[ing] closely with partners and understand[ing] their financial issues and ultimately be[ing] accountable for the entire chain.”

Their comments reflect the new wave of “recession hangover” challenges now facing hi-tech supply chain executives as a direct result of measures taken to survive the recession. Executives now cite reduced freight capacity, shaky supplier bases, low staff numbers and uncertain forecasting among their foremost issues.

Both McGivern and Madeleine agreed that emerging markets and particularly China and Brazil were still areas of interest for their companies.

Looking ahead, Madeleine said he expects cloud computing and SaaS models to be key drivers in facilitating more sophisticated supply chains, while reducing wasted movement and excess inventory.

This Q&A formed a part of an ongoing eyefortransport series, which has also featured Tandberg, Canon and Sharp.

Patrick McGivern and Mike Madeleine will expand on their thoughts in this interview as speakers at the 4th Hi-Tech & Electronics Supply Chain Summit, November 9-10 in San Jose.

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