It’s cold out there!

So another company calls in the administrators – this time the iconic Wedgwood pottery maker. I’ve been round their plant and what is so sad is that there is a real risk that the world will lose some of the most skilled pottery makers. The way the products are made has years of tradition and know how.  

Woolworths closes its doors today – how much of that is recession related is difficult to say as the business model was very much under pressure, but we should look deeper and be aware of the wider reach of this sad event. Woolworths whilst losing money had been spending money and was an SAP user, and before anyone suggests anything, the use of SAP had nothing to do with the business model!!  Now that is income that SAP will no longer receive, and this was run on IBM hardware for which IBM will no longer receive income, and that was based in data centres that will no longer receive income and so on. When a big player stops the impact can have knock on effects where perhaps you least expect. The media distribution arm of Woolworths getting into trouble undoubtedly impacted Zavvi which has also called in administrators.

So the message is check your supply chain and make sure that you know that your partners are strong and secure, and if you are concerned – take action!

 

 

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