Inventory overcorrections likely as supply chain pain hits retail availability

 Product shortages have become all too common lately as businesses get waylaid by COVID infections and ongoing logistics challenges that show no signs of abating, but the current supply chain crisis belies a digitalisation shift that will change the game as we know it.

Nonetheless, short term pain remains on the horizon and many procurement managers will be tempted to go overboard on stock amidst supply chain unpredictability.

"You’re going to see a slightly increased cost of the supply chain while people deal with that lumpiness and that unpredictability, so they will then overcorrect slightly so that they don’t end up with no product to sell," explains Travis Erridge, chief executive officer and co-founder of TMX Global, a supply chain consultancy formed through TM Insight's acquisition of XAct Solutions.

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