Just 33% of Supply Chain Managers Think Warehouse Inventories Will Return to Normal
Just 33% of Supply Chain Managers Think Warehouse Inventories Will Return to Normal
Just 33% of Supply Chain Managers Think Warehouse Inventories Will Return to Normal
Just 33% of Supply Chain Managers Think Warehouse Inventories Will Return to Normal
Just 33% of Supply Chain Managers Think Warehouse Inventories Will Return to Normal

Just 33% of Supply Chain Managers Think Warehouse Inventories Will Return to Normal

April 10, 2023
Bloated warehouse inventories are an expensive pressure eating away at the bottom line of many companies.

In a recent survey, CNBC Supply Chain Survey, released on April 5, Bloated warehouse inventories are an expensive pressure eating away at the bottom line of many companies, and for many, the excess supply and associated costs of storage won’t abate this year, according to a new CNBC Supply Chain Survey.

The survey was comprised of 90 logistics managers representing the American Apparel and Footwear Association, ITS Logistics, WarehouseQuote, and the Council of Supply Chain Management Professionals, or CSCMP, who participated in the survey between March 3-21.

Just over one-third (36%) said they expect inventories to return to normal in the second half of this year, with an equal percentage expecting the gluts to last into 2024 — 21% saying a return to normal can occur in the first half of the year, and another 15% expecting normal activity by the first half of 2024.

But uncertainty about inventory management is significant, with almost one-quarter (23%) of supply chain managers saying they are not sure when gluts will be worked off.

The survey found that 20% of their excess inventory sitting in warehouses is not seasonable in product nature. Slightly more than half of survey participants said they would keep the items in warehouses. But a little over one-quarter (27%) said they are selling on the secondary market because inventories impact a company’s bottom line through elevated storage prices.

Bloated warehouse inventories are an expensive pressure eating away at the bottom line of many companies, and for many, the excess supply and associated costs of storage won’t abate this year, according to a new CNBC Supply Chain Survey.

Almost half surveyed said the biggest inflationary pressures they are paying are warehouse costs, followed by the “other” category, which includes rent and labor.

These costs will be passed onto consumers say 44% of the survey respondents.

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