The Supplier Inventory Challenge

I've noticed a little problem with supplier inventories recently. I actually blogged about this situation back in September. And it's been occurring a little too frequently as of late.

Yesterday I placed an order for some dress shirts only to find out that some tall sizes are out of stock for the next 3 months. Got a pen order this week -- no stock in any colors till late May. Jacket order last week -- no stock in my client's desired color till end of JUNE. Notice a trend here...?

My take is we're slowly but steadily emerging from the economic meltdown of the Fall of 2008. Clients have ramped up their marketing considerably vs. a year ago and suppliers are busy once again. That's the good news.

Unfortunately, the slowdown of 08/09 coupled with the subsequent tight credit market forced suppliers to make some tough decisions -- like limiting inventories. They tried to project -- as they've always done -- which products would sell the best and they ordered from Asia accordingly. But business has picked up and some suppliers have been caught short -- and maybe weren't in the best financial condition to begin with thanks to the recession.

So what we're dealing with now is an environment where many promotional items -- a lot more than usual -- aren't available. And we as distributors have to make a lot more phone calls checking stock because (and trust me when I say this) people in my business absolutely HATE having to call clients back after an order is placed and be forced to say 'you know those _ _ _ _ _ you ordered yesterday? No stock till _ _ _ _ _.' Ugh.

We will however, get through this. And it's my job to either find alternative sources for out of stock products or show you ideas - to begin with - utilizing items that ARE available right now. That's where my experience and the great support we get through Geiger come into play. We WILL make it happen for you.

However on the supplier side of our industry I think we're in a shake out phase -- one that to me and many others -- was an inevitable byproduct of the 08 economic collapse and resulting recession. There's a reset going on in our industry that's going to cause some weaker vendors to reevaluate their long term strategies and some stronger ones to gain market share. We've seen it with the recent Bic/Norwood merger and the Corvest collapse and sale.

And I think there's more to come..... But be assured that given our collective experience and Geiger's position of leadership in our industry, we'll make sure your business rests in the proper stable hands.

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