Surviving the economic crisis in distribution and warehousing business

• Main Author: Chia, Tow Fong.
• Other Authors: Lum Kit Meng
• Format: Final Year Project
• Language: English
• Published: 2010
• Subjects: DRNTU::Engineering::Maritime studies::Maritime management and business
• Online Access: http://hdl.handle.net/10356/39649
• Institution: Nanyang Technological University

This research project aims at studying the impact of the current financial crisis on the distribution and warehousing businesses and the reasons why some businesses continue to thrive while others collapsed during the crisis. One of the focuses of the project will be on whether the use of IT and other advanced technologies have helped to overcome the impact of the economic crisis and speed up the recovery process. As few studies have focused on the evolutions of warehouse and distribution center in expanding their range of services in order to meet the increasingly complex needs of customers. Empirical evidence collected through surveys provides insights into the severity of economic crisis faced by warehousing and distribution business, as well as the strategies taken to overcome the crisis. Survey findings revealed that almost half of the surveyed companies did not show improvement in terms of sales volume in 2009. Specifically, the reduction in business volume was rated as the main reason for causing the poor performance of the company. The survey findings also showed that most of the surveyed companies were not prepared for the financial crisis, and most of them have recognized the importance of IT system in remaining competitiveness in the market. Recommendations to overcome the economic crisis are highlighted in the last part of this research paper, which included strategic planning and technology management. Strategic planning was categorized in two groups, which were proactive action and defensive action. Technology management was found to be contributing significantly in meeting the logistics needs of customers.