The end-of-year hairstyle for the stock

 
In many companies, it is once again time for the big trick: At the end of the financial year, inventories are reduced – whatever the cost – to an unrealistic level at which the company cannot operate economically at all.
Experience shows that it takes an average of three to six months before production is back in balance.
In the meantime, the company struggles with procurement problems, supply bottlenecks and productivity losses. Wouldn’t it make more sense to do without this kind of balance sheet self-deception? Thanks to the costs saved by balancing production in the following year, earnings could be improved.
It would perhaps be even better if, at the end of the year, the controlling department did not have to balance out what those responsible for the value chain did not manage to do during the year with their on-board resources: an economical value chain at a lower inventory level…
This way, the inventory sits perfectly throughout the year and does not have to be capped at the end of the year.
On behalf of the A&K team, I wish you happy holidays, wise insights and quick decisions in the new year!
Your
Andreas Kemmner

Picture of Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner