Nathan Rogge, president and CEO of the Bank of Southern California, said many of the bank’s clients are increasing their lines of credit. That’s one reason why building up a buffer of inventory can be expensive. Once Whelan receives all those goods, he has to find a place to store them. “If I get something four months early or six months early, who cares?” Whelan said. That means he’s ordering products today that he’d normally order months from now. “I had a shipper tell me they had five loads to ship to us, but they could only get two containers and won’t be able to get the other three containers till the end of June,” Whelan said.Īs a result, Whelan said he’s doubling and tripling up on orders to create a buffer for any future delays. Ports are blocked up, transportation costs are skyrocketing and shippers are even having trouble finding containers to ship goods in. The problem, Whelan said, is the congested supply chain, which is slowing down imports all over the country. “I’ve got import folders - it’s hysterical - where you see the ETA crossed out, cross out again, crossed out the third time, as they’re getting stuck,” said Pat Whelan, who manages the store’s shipping and logistics. Keeping as little inventory on hand as possible keeps stuff fresh, reduces waste and cuts down on storage and inventory costs.īut this year, many businesses are throwing the just-in-time strategy out the window and instead stockpiling inventory to make sure they have enough product on hand.īrooklyn grocery store Sahadi’s imports a lot of products from the Mediterranean and the Middle East, and lately, a lot of those products are taking a long time to arrive. The idea is to keep just enough product on the shelves in the warehouse or back room just in time for customers to buy it. In business, there’s a common strategy known as just-in-time inventory management.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |