Winning Now, Winning Later: How Companies Can Succeed in the Short Term While Investing for the Long Term
Winning Now, Winning Later: How Companies Can Succeed in the Short Term While Investing for the Long Term
How do you revamp inventory?
Just in time will only be effective
. when everything in the pipeline is ready to be just in time
You start with
.Reducing the time from order to delivery
. save operating costs from efficiency
. Can price be increased?
Inventory is reported based on cost and not price. So no negative implications there.
Short-termism Vs Long-termism
A deal done for $60mil with short-termism could result in obligations of $1billion.
Younger generations of customers and employees demanding transparency and social responsibility will change how you run the business.
Is buying back inventory an option to alleviate customer's poor product forecasts.
EDLP or Every day low price strategy is helpful if price leads to predictable demand. If price increase when results in fewer orders of future, due to customers limited capital, then it has inventory implications.
A way to price with markers making it internally clear as to why the price is being increased or decreased.
Finance department should work with the business unit for the forecast. Adding to that take -
"The ability of a company to try something its finance director doesn't like, is probably the best business quality to invest in. A company that has the power to do things that the finance guy dislikes, has the quality to stumble upon lucky accidents, which no one else will do" pic.twitter.com/nhWFQipW7J
— Post M. (@Post_Market) July 28, 2020
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