Effective inventory management practices are gaining importance as distributors reduce inventory levels in response to demand drops and a renewed focus on cash flow. This article examines best practices for approaching the task.
In mid-November, sales for many distributors – with few exceptions – plummeted. Distributors were caught with excess inventory in an environment of much lower demand.
Many distributors are now working down inventory to maximize cash flow. And they have returned to a focus on the basics: accurate forecasting, reliable safety stock parameters, improving communication with vendors and getting a good handle on the product that is already in their warehouses so they can avoid overstocking.
A top concern for …
Inventory Reductions On Tap
Effective inventory management practices are gaining importance as distributors reduce inventory levels in response to demand drops and a renewed focus on cash flow. This article examines best practices for approaching the task.
In mid-November, sales for many distributors – with few exceptions – plummeted. Distributors were caught with excess inventory in an environment of much lower demand.
Many distributors are now working down inventory to maximize cash flow. And they have returned to a focus on the basics: accurate forecasting, reliable safety stock parameters, improving communication with vendors and getting a good handle on the product that is already in their warehouses so they can avoid overstocking.
A top concern for …
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About the Author
Lindsay Young
Lindsay Young is the president of 3 Aspens Media, a B2B content strategy and marketing content firm that works with distributors to translate their offline expertise – online. She has more than 20 years of experience leading and producing online and print content for publications and businesses. She leads a team of 12 writers, client success managers, designers, marketing specialists and strategists to produce content that helps companies translate their benefits to key decision-makers. She was previously the editor of Modern Distribution Management.
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