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Inventory equilibrium key component of risk mitigation

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Article by Denise Deveau

Just about every inventory-carrying business will have faced a crisis of some sort. The 2011 “winter that never was” left stockpiles of seasonal wear with no buyers on board. With the NHL lockout, warehouses are chock full of promotional items that will barely see the light of day.

On the other side of the scales, too little inventory too late can mean lost customers, higher production costs and significant delays. Recent natural disasters in particular have made it all too clear that keeping things lean can be precarious.

Striking the right balance isn’t easy when materials travel across the ocean or price volatility is wreaking havoc with the cost of materials, says Michael Denham, country managing director for Accenture Canada in Toronto. “Since the recession and all the disruptions in the supply chain in Asia, companies are carrying more inventory than has been the case in the past.”

Read the full article on the Financial Post website.