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A lot of it had to do with the really weird demand patterns that developed over the last two years. We went from 100 demand to 20 as lockdowns happened, then 20
by puranjay 4y ago
A lot of it had to do with the really weird demand patterns that developed over the last two years. We went from 100 demand to 20 as lockdowns happened, then 200 demand as economies opened, then back to 20 again as a new wave of lockdowns took hold.
If you were a manufacturer, you had no real way to deal with this unpredictability. Do you add capacity to cater to the post-lockdown 200 demand? If you do, you might end up with too much inventory as demand goes back to the usual 100.
Throw in the clogged up ports and higher input costs due to Russia-Ukraine war and we have this strange period where everyone is confused and no one really knows what to do
- TMWNN 4y ago>If you were a manufacturer, you had no real way to deal with this unpredictability. Do you add capacity to cater to the post-lockdown 200 demand? If you do, you might end up with too much inventory as demand goes back to the usual 100. Retailers, too. Both Target and Walmart have reported having far too much inventory. It's one thing when one store has a fire sale on a product it bought too much of, but multiple stores finding that they did so across the board? That's very unusual.