Phoenix Investors’ Frank Crivello on the Safety Stock Boom

At the height of the COVID-19 pandemic, stores commenced to operate out of stock, and brands ran out of raw elements to make a lot more. As a outcome, stockouts amid U.S. retailers jumped from 14 p.c in 2019 to 35 % in Might of 2020. Approximately two many years later on, quite a few merchants continue struggling to continue to keep items on the cabinets in the confront of increased demand. Many producers still can not get the necessary factors they require, these as semiconductors, steel, wooden and considerably more. These ongoing inventory shortages have led organizations to rethink their procurement and inventory management techniques.

Whilst some businesses may possibly have held some stock in reserve for emergencies as a finest exercise, the bulk of business leaders all over the planet have invested many years striving to squeeze each final cent out of operations through Just-in-Time (JIT) creation and

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