Performance During the Covid-19 Pandemic from 2020 until now
In 2020, the day-to-day activities of virtually everyone around the world changed dramatically. We have seen the concurrent increase of raw material costs and shipping rate costs. Manufacturers and overseas importers also encountered an unprecedented business environment and rose to the challenge, meeting the needs of a world in lockdown.
The 2021 Forecasting and Inventory Level is particularly relevant because it reveals the state of supply chain performance during the Covid-19 pandemic in 2020 and offers a fact-based assessment of the business impacts.
We need to be resilient and prepare for large-scale disruptions in the future, from energy crisis, to lockdown in pandemic, or to government shut-down.
Lessons we Learned So Far
The Pandemic Made Business Structurally Harder Than Ever to accurate quote and hold the price stable for longer periods.
Sales Increased, Driven by a Rise in Demand for Essential Goods that are made in China.
Rise in Safety Stock To Cover Shipping duration Volatility and more working capital required to buffer wire raw material volatility
Shift in Strategy From “Growth Through Acquiring new customer” to “Growth Through Better servicing existing customers”
The default risk from debtors are significantly higher
The ability to speculate raw material is all-time low.
To work with a reliable and trust worthy factory in China is more important than ever
The Volume of Business Exposed to Extreme Error Rose to an All-Time High
Best Way To Control Safety Stock Remains Inventory Optimization Combined With Demand Sensing
JINZHOU CITY METAL PRODUCT AND WIRE FACTORY
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