That means Great Deals
Global manufacturing inventory levels hit a record high of $1.8 Trillion, according to a recent survey of a diverse group of global manufacturers.
Some companies are starting to scale back their acquisition efforts. This is due to decreasing consumer demands and rising inventory levels. This development has caught many companies off guard, as post-Covid consumer demand has them scrambling to fill orders.
According to a report by Nikkei, manufacturing inventory levels grew by $97 billion in just the last 90 days. Sportswear giant Nike has been the latest to report slowing demand which has led to a 44% increase in inventory levels according to Reuters.
Although there are some companies still struggling with shortages, most are also being challenged with the difficult task of clearing bloated inventories caused by over-ordering.
The yo-yo inventory levels in the global retail sector have been caused by the classic “whiplash” effect of under-ordering, leading to amplified shortages followed by over-ordering. The uncertainty of a potential global slowdown is now developing with more clarity.
So, what does high level manufacturing inventory mean for buyers and sourcing teams?
In a recent survey of large retailers, the answer for bloated inventories is to take an aggressive stance with mark-downs and special sale prices that are, in some cases, at a loss.
This approach to high inventory levels is not unique to retailers. However, it is a widely used approach throughout the supply chain.
This means in times such as these, there are outstanding opportunities to negotiate great deals for purchased goods. Now is the time to search for bargains and renegotiate existing pricing for the goods you purchase.
This is where Surefire Sourcing Solutions can ensure you are getting the best price and best quality for your money.
Let Surefire do the leg work and help you find the best solution for your supply chain. Whether it is helping to find a new supplier. Or managing the best commercial terms and pricing with an existing supplier. Surefire Sourcing Solutions is your answer.
Contact us now and let one of our industry experts help you with your inquiry. There is no cost to you until you are satisfied with the goods or services required. Let Surefire be your sourcing solution.
