The following is from “Managing in an Uncertain Economy” - a blog created by the Council for Research on Distributor Competitiveness (CRDC).
“The current economic
environment is frustrating to say the least,” saysDr. Barry Lawrence
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 hereto 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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Best Practice: Inventory Stratification
August 10, 2009