The Impact of Oil Price on Supply Chain Strategy (David Simchi-Levi, professor at MIT and ILOG Chief Science Officer): CSCMP session elicits thought-provoking questions

Greetings from Denver, CO. The ILOG team is at the CSCMP 2008 Annual Conference. Yesterday started with a keynote speech on “Global Strategic Risk” by Frances Townsend, former assistant to the President for Homeland Security. Then the individual sessions began with a bang. David Simchi-Levi’s talk, The Impact of Oil Price on Supply Chain Strategy, had overflow attendance. There was a lot of excitement about the Wall Street Journal article, Crude Calculations: Why high oil prices are upending the way companies should manage their supply chains written by Narendra Mulani, Derek Nelson, David Simchi-Levi, and Jonathan Wright.

At the Learning Exchange it was great to see so many friends and customers of LogicTools and showcase some of our new product releases such as Transportation Analyst and the forthcoming version of Plant PowerOps. It was also interesting to hear how customers are using the LogicTools suite to transform their supply chains.

Later in the day, David was interviewed by CSCMP TV. Some of the questions he was asked included:

What is the impact of oil price on transportation cost?

What is the impact of oil price on the distribution network?

Why is flexibility important?

What is the net effect on supply chain strategy considering Inventory, service and off shore?

The answers to these questions will be aired on CSCMP TV next Wednesday (October 15th) but in the meantime I’d like to get some perspective from supply chain professionals. I look forward to reading your comments.

Tags: , , , , , , , , , , , ,

Leave a Reply