The SCM Solutions management team has been discussing how the slowing US economy will impact our pipeline of business. You could look at it two ways: (1) corporate budgets will be reduced during ‘08 therefore fewer dollars will be allocated to consulting based projects for ‘09 or (2) companies need to improve their supply chain cost centers to remain competitive and will make strategic investments to get there. It is too early to tell which one of these theories will win out but we believe SCM Solutions is well positioned for either one. As a niche firm employing only senior consultants, we can staff projects with fewer heads and generate faster results than our competition. Our strategy of helping clients realize business benefits incrementally through the projects as opposed to long and drawn out implementations will also be key.

We are seeing an increase in the number of good SAP SCM/APO consultants looking for positions so that may be an early sign of the market softening. Luckily, our direct business is growing and we will continue to hire these folks so we are even better positioned with talent when the economy comes roaring back.