Lessons from the Recession (2007-2009): Lean Inventories and the Integrated Supply Chain
According to Wikipedia; “The US entered a recession at the end of 2007, and 2008 saw many other nations follow suit.” Many economists believe that the recession that started in late 2007 in the US was a direct consequence of (a) the Housing Market Correction and (b) the Subprime Mortgage Crisis . What followed was a very difficult operating environment for many businesses that depended on banks for credit to keep them afloat. Credit was tight and often in many instances was being revised down – not only for businesses but also for consumers. Businesses selling high ticket items started seeing a significant decline in customers who depended on “No/Low Interest Long Term Financing Options”. Businesses were now competing based on “who could save the consumer more money”. The old adage “Shop Till You Drop” was no longer valid. Consumers started pulling back on making purchases and “bargain hunting” had become commonplace. Consequently to match this decline in demand, b...