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
The end-of-year hairstyle for the stock


Prof. Dr. Andreas Kemmner
Prof Dr Kemmner is Co-CEO of the Abels & Kemmner Group and has carried out well over 200 national and international projects in 30 years of consulting work in supply chain management and restructuring and was the only publicly appointed expert for the profitability assessment of industrial companies in Germany for over 10 years. In 2012, he was appointed Honorary Professor of Logistics and Supply Chain Management by the WHZ. The results of his projects have already received several awards.
Talk to us!
We are there for you personally and will be happy to advise you individually on our services and solutions.