More news on inventory. Back on January 8th we blogged about the shortages that we were experiencing, along with the cause and effect of them. With several months of more history we are ready to declare that this is more than a short term blip.
There are many signs that tell us this phenomenon will be around for more than a few more months. The shortages are a piece of complex puzzle. Companies see inventory as cash that is tied up. In a down market companies shrink inventories to raise cash and to improve the financial calculation known as ROII (return on inventory investment).
At the same time companies have trimmed their work forces to reduce operating expenses. There is always a decline in efficiency and customer service when the work force is reduced.
When the entire supply chain is stressed by less raw materials on hand, less production workers, less manufacturing shifts, less employees to administer the process, the compounding result a challenge.
Since we are all impacted as supply chain partners each of us must incorporate this into our planning process. Our expectations of what previously happened needs to be tempered. At MCM we have a good pulse on each supplier and we will do everything possible to help you keep your project on time and on budget. Call or e-mail us to discuss your next project and your timeline. We are here to help. 888-344-6060
