Oh No! Overstock and Economic Slowdown
In a recent article[i] in Modern Distribution Management, this headline caught my eye, “Distributors Working Though Overstock Amid Slowdown”.
The author was expressing the viewpoint that increasingly distributors were looking at the amount of inventory that they were carrying amidst a potential economic slowdown that may extend into 2024.
This point of view was validated by the Q3 Baird-MDM Industrial Distribution Survey, in that reducing inventory levels will be a priority for distribution throughout 2024 with many distributors looking at having to sell off excess inventory.
When I pause and consider MarketsConnection, I have to say, “we have a solution for that!”
As we continue to talk to distributors around becoming vendors on our marketplace, here are some of the opportunities that distributors are anticipating:
- An opportunity to move more volume in strategic categories.
- An opportunity to sell off overstock.
- An opportunity to increase the order frequency on a key product line helping with its turns.
- An opportunity to broaden distribution in new geographies and channels.
- An opportunity to recover cash from inventory that might have to be written off
What are your needs?
How can we help? Set up a meeting to discuss with us!
[i] October 24, 2023