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Chain Events
Friday, August 7, 2009
Inventory down, on-demand services up
With everybody asking whether the economy is rebounding, most economists are looking to see whether companies are building inventory. Traditionally companies would be building inventories to be able to meet 4th quarter demand. It is pretty clear that everyone is skittish about building inventory.
This probably represents a significant structural shift. Rather than build-to-inventory most companies have gone to a build-to-order model. However, this model requires a full rethinking of the supply chain, the product and the information delivery. Most supply chain professionals have not yet taken this step. Could this maybe lead to added product cost and shortages in 4th quarter?
Inventory down, on-demand services up
With everybody asking whether the economy is rebounding, most economists are looking to see whether companies are building inventory. Traditionally companies would be building inventories to be able to meet 4th quarter demand. It is pretty clear that everyone is skittish about building inventory.
This probably represents a significant structural shift. Rather than build-to-inventory most companies have gone to a build-to-order model. However, this model requires a full rethinking of the supply chain, the product and the information delivery. Most supply chain professionals have not yet taken this step. Could this maybe lead to added product cost and shortages in 4th quarter?
