Best Practice: Inventory Stratification
“The current economic environment is frustrating to say the least,” says Dr. Barry Lawrence, Texas A&M University. “Many have adjusted to lower volume and reduced their capacity (inventory, human resources, value added services, and even facilities) to reflect a lower business volume. Manufacturers have dramatically scaled back with some cutting capacity by as much as 80%,” he adds.
Although some believe that production will be needed again shortly, issues with the banks, excess real estate inventories, and consumer debt will continue to linger. As for the market, aggressive firms are already thinking about the recovery, while others are praying for relief or fighting off bankruptcy. "In the midst of this chaos and with so many different priorities among distributors, how does one come up with a common set of strategies we can all discuss and share for the betterment of the distribution community?” he asks.
Read the full article here to find out the answer and for more insight (from “Managing in an Uncertain Economy” - a blog created by the Council for Research on Distributor Competitiveness (CRDC).)
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