Supply (off-the) Chain

The kinks in the supply chain have been worked out. Now the bad news: Inventory.

Are the goods turning bad? The enemy of 2020 - supply chain - has delivered, and now the goods have landed. As inventory turnover shows us, though, it appears that those goods are piling up.

Like many other commerce KPIs, inventory turnover Is down. Even the best perfoming brands have seen their turns cut in half. While sales have been down nominally YoY, the most likely culprit for inventory turnover declines is the denominator - more items on hand.

As we move into the peak shopping season, those inventories won't ship themselves. Look out for heavier than normal discounting in Q4 2022, as retailers look to move goods.