Respect “good” inventory – Supply Chain Management Review




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In my September 2022* Insights column, I assessed the state of the omni-channel market from a demand-side and supply-side perspective. I also discussed the development of Amazon and Walmart. I concluded that the e-tailing market has grown faster during the pandemic as more consumers chose the convenience of ordering online when stores were closed. However, brick-and-mortar retailers are beginning to win back market share from e-tailers through innovation. Still, there are many uncertainties as to which trends will continue and how to capitalize on them.

One of the supply-side assessments looked at inventory build-up as the impact of the pandemic eases. A Wall Street Journal article last June titled “Retail Lead Times Spur Inventory Woes” ​​noted that as demand for items other than those routinely sold during the pandemic is increasing, “retailers are seeing increasing inventories along with remain behind due to product shortages”. The combination of long production cycle times, factory closures, shipment delays, backlogs at ports and other supply chain bottlenecks caused companies to “start planning and ordering at overseas factories later, making it more difficult to match supply and demand.”

Winners succeeded by having goods

I understand the problem of matching supply and demand based on an uncertain future. However, the title of the article implies that having excess stock is a bad thing once the pandemic subsides. is this real It depends on.

Through ·

In my September 2022* Insights column, I assessed the state of the omni-channel market from a demand-side and supply-side perspective. I also discussed the development of Amazon and Walmart. I concluded that the e-tailing market has grown faster during the pandemic as more consumers chose the convenience of ordering online when stores were closed. However, brick-and-mortar retailers are beginning to win back market share from e-tailers through innovation. Still, there are many uncertainties as to which trends will continue and how to capitalize on them.

One of the supply-side assessments looked at inventory build-up as the impact of the pandemic eases. A Wall Street Journal article last June titled “Retail Lead Times Spur Inventory Woes” ​​noted that as demand for items other than those routinely sold during the pandemic is increasing, “retailers are seeing increasing inventories along with remain behind due to product shortages”. The combination of long production cycle times, factory closures, shipment delays, backlogs at ports and other supply chain bottlenecks caused companies to “start planning and ordering at overseas factories later, making it more difficult to match supply and demand.”

Winners succeeded by having goods

I understand the problem of matching supply and demand based on an uncertain future. However, the title of the article implies that having excess stock is a bad thing once the pandemic subsides. is this real It depends on.







November 2, 2022


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