![]() Companies Grapple With Post-Pandemic Inventories Dilemma – The Wall Street Journal.SFIA Trends & Insights – SFIA (Sports & Fitness Industry Association).Supply chains: companies shift from ‘just in time’ to ‘just in case’ – Financial Times.Retail Supply Chain: Navigating Through Rough Waters With Improved Agility – RSR Research.Keeping stocks to a minimum level also helps reduce fashion risk and manage items with a sell-by date. Regardless, a Wall Street Journal article from November indicated that many companies expect to return to pre-COVID inventory levels once trading conditions normalize because holding buffer inventories ties up capital and requires warehouse space, oversight and insurance. He said, “When things go sideways, having access to raw data at different levels is really critical to be able to manage and make good decisions.” Other lessons include the need for “dependable supply” as well as strong visibility that will also help when over-supply and scarce warehouse space inevitably becomes a problem. Kra, highlights the importance of assuring redundancies, such as holding extra inventory, not overly relying on short-term, flexible contracts, and having alternative supply sources, to add agility as a “just in case” buffer. ![]() The supply chain crisis, according to Mr. Kra, “because you had all your eggs in one basket and the world went from just-in-time to this inability to get stuff for a multitude of reasons.” “That tightness really came back to haunt some of our clients,” said Mr. Speaking recently at the SFIA (Sports & Fitness Industry Association) Trends & Insights conference, Jason Kra, president at Li & Fung, said “just-in-time” drives efficiencies but reduces diversification. ![]()
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