Apple, the icon of the personal computer industry, cut sales and profit forecasts in December and promised to clean out the sales channel, which had swollen to hold some 11 weeks of inventory
Picture what happens there: If you have a problem, it's immediately tested right there, and you don't have weeks of inventory
. They get to see how it's installed, and they can make running changes at the same point in time.
"We've literally got some of our customers down to three or four weeks of inventory
. That's real money.
He points out, though, that all manufacturers' revenue streams have been affected to some degree by retailers' adoption of inventory management programs."Several weeks of inventory
have been taken out of our customers' warehouses," he says, "offsetting overall growth within the feminine hygiene category.
If there is 2.5 weeks of inventory
in storage, inbound processing is not pressing.
"The way we break it down is there needs to be two to six weeks of inventory
across the entire supply chain.
This is a sharp downturn from the eight weeks of inventory
that was the norm until last summer, when the levels began to fall due to an unexpectedly strong fourth quarter and some manufacturers' delivery problems.
"Part of that is holding three weeks of inventory
instead of three days as in the old warehouses.
On average, the facility maintains approximately four weeks of inventory
Do I have more than three weeks of inventory
The warehouse has on hand about 6 weeks of inventory
, which is really 2-1/2 billion pieces.