TECH & AI that supply chain teams were doing has significantly decreased , the most challenging question teams are grappling with today is , ‘ what now ?’.

“ During the pandemic , inventory management shifted drastically from JIT to just in case ( JIC ). While there ’ s been a slight pendulum swing back towards efficiency and lean practices during this uncertain economic time , there ’ s also a lingering concern that major disruptions could potentially reoccur – similar to , if not worse than , COVID-19 , which could greatly impact companies with insufficient inventory .”

Inventory management complicated by disruption Saul Resnick , CEO UK & I at DHL Supply Chain , is well placed to paint a picture of the demand and inventory state of play .

He reveals that , as a result of recent supply chain disruption , seasonal stock is arriving earlier than in previous years , meaning many businesses are looking for additional storage space .

Meanwhile , in the UK specifically , a largely underwhelming summer has added further complications to inventory management , with a surplus of summer stock in stores and warehouses .

Saul explains : “ While some of this can be stored until next year , incurring additional costs , fashion and trend-led items will need to be boosted with discounts or sold off through other channels to make way for incoming autumn , winter and Christmas stock .”

Increase in acquisition or leasing of industrial space in 2022 compared to 2021 ( Cushman & Wakefield )

He also observes that , despite ongoing disruption , the anticipated shift to nearshoring – certainly from a UK and Europe perspective – has failed to materialise .

“ Within retail ,” Saul goes on , “ we ’ re still seeing a high volume of stock coming from East Asia , highlighting that businesses aren ’ t focusing on localising their operations but instead on establishing fluid , agile supply chains that have the scale and capacity to adapt and cope with challenges as they arise .”

Highlighting the ongoing dilemma faced by supply chain managers , John says these leaders are endeavouring to strike a balance between lean inventory to satisfy finance teams and managing higher inventory levels to meet operational needs .

He adds : “ In addition to this , there ’ s the increased complexity in forecasting demand due to shifts in how consumers or companies order . To curb this , supply chain teams must be more responsive with less certainty .”

supplychaindigital . com 249