Inventory is big issue for my companies today. Workers over the last few years working in inventory have dealt with a lot of issues. Ben Uglesbee talks about how the pandemic caused damage on many companies. In his article, “Inventory in 2022: Normal is still nowhere in sight”, Uglesbee gives real life examples by talking about Target. During the pandemic, inventory was a complete mess. Companies had to make tough and important decisions on a daily basis.

This article was really interesting in my opinion because the company I worked for over the summer had dealt with situations like Target was dealing with. Seeing unhappy customers due to their orders being canceled and coming in late. The company had to make decisions in order to satisfy our loyal customers. The job taught me a lot about inventory and this article strongly related to how inventory is today. Inventory will always have its up and downs, but inventory is very important to companies because that is how they make profit.

The Pandemic’s Damage on Inventory

“If you know anyone who works in demand forecasting or inventory management for a retailer, they could maybe use a hug.”

– Ben Uglesbee

Uglesbee talks a lot about how the pandemic changed many things for companies. Companies had a lot of decisions to make along with problems to handle. The pandemic changed how companies purchase inventory and their methods on what inventory to buy. Uglesbee mentions that companies had low supply numbers due to panic buying. Inflation rates were constantly rising due to the economy. The pandemic hit out of nowhere and companies were making cuts on their budgets and seeing low profit numbers. Uglesbee mentions that companies had to change their way of buying and selling products due to low stock and inventory numbers.

“Retailers, brands, wholesalers and other industry players are trying to match inventory with consumer demand — whatever that will be for the season.”

– Ben Uglesbee

Empty Shelves at a Target in Dallas

Source- Written by Peter S. Goodman and Niraj Chokshi, https://www.nytimes.com/2021/06/01/business/coronavirus-global-shortages.html

Target’s New Plan

Target is one of the biggest retailers today in the United States. The pandemic didn’t only affect Target, it affected all companies and businesses. Many customers have been changing their purchasing behaviors very quickly. Many customers couldn’t believe their eyes when they say some of these new prices in the stores. Due to inflation, prices were rising high in food and fuel. Due to Russia being one of our big sources for fuel, the war with Ukraine really put a boost on the prices to the buyers. As we all know, Russia is one of the biggest/ major oil supplier in the world today. Since they invaded Ukraine those prices have sky rocketed. Also with the prices of gas, many were staying in more and only driving if they have to.

“They’re guessing. They’re all guessing. And any one of them that tells you they’re not guessing, they’re lying, because they don’t know.”

– John McQuiston, managing director and global head of originations, receivables and trade finance with Wells Fargo

Is Target Leaving Customer’s Unhappy?

Due to many ‘Cancellations, delays and markdowns’ it has caused a lot of stress and emotion to companies along with their buyers/ customers. The pandemic affected many companies, due to shortages in supplies and workers. Many workers don’t even want to work and are putting their company in a tough position. Target was making tons of tough decisions to help benefit the company. Yes, customers will be unhappy because of products they can’t get anymore and delays in shipping, but there really isn’t much Target can do. Shipping delays are due to people not wanting to work, if you have only half of your delivery drivers then things will take longer. People are having their orders canceled because shipping dates and low inventory. There is inventory sitting on ships and warehouses that can’t be sent out due to the shortage of drivers.

Companies Dealing with Excess Inventory Challenges

Source- Written by Robert (Bobby) Dalheim, Senior Editor of Case Goods and Global Sourcing, https://www.google.com/httpwww.furnituretoday.com

Who would be happy with products coming in late? This is not in our control, we were in a pandemic that changed the whole economy. Prices for fuel and food are still high today, they may never get back down where they were.

Uglesbee talks about the issues in inventory during the last few years of the pandemic and how companies like Target were effected. Inventory numbers were low for companies due to the Pandemic and shipments were delayed and coming in late.