Supply Chain Challenges: From Shortages to Gluts

Supply Chain Challenges: From Shortages to Gluts

We love the holidays, especially all the business predictions about next year. The future of the supply chain will be a hot topic to forecast. It’s going to be easy to claim that acute shortages could lead to overproduction. It happens a lot…

Today’s Challenge 

The Wall Street Journal had a recent article titled “Today’s Shortages Could Become Tomorrow’s Gluts,” which describes a few categories where the price increases and shortages could be transitory. The article demonstrates how one glitch impacts so many related suppliers and industries. “Shortages of some manufactured items are creating inflation elsewhere. The dearth of new vehicles has made it hard for rental-car companies to restock their fleets, which is a big part of why it cost 49.2% more to rent a car or truck in October than before the pandemic. Fewer new car purchases by rental companies in particular has led to fewer available used cars, and used car and truck prices have risen 44%.

Pinpointing Price Changes

Are the price increases in lumber, cars, furniture and washing machines transitory or sticking around for a while? “Imagining that supply-demand imbalances will persist, and then finding that they won’t, is a common occurrence.” Think of commodity prices for beef or framing lumber this past year. Generally speaking prices should drop. The challenge has always been where and when. Until then, the price increases in freight and warehousing are having a direct impact on the secondary channels for surplus inventory and assets and it is getting really expensive to buy or sell slow moving assets. 

We understand that our relationships with surplus inventory and other non-performing assets are changing. Net Trade can help you improve your recovery and guarantee the sale and disposition of your challenging assets.

​​The past two years have altered the channels and relationships concerning surplus asset disposition. We are all too familiar with any number of issues. The question is how best to solve for these challenges.

Some tactics include: sell, trade, and donate. 

Why Multiple Tactics?

The marketplace remains volatile. Costs for shipping and warehousing are not coming down anytime soon. Demand seems to change very quickly and supply can be a question as well. Looking at multiple tactics allows for a lot more flexibility. 

Why Net Trade?

The best rule of thumb to follow in the asset disposition space is, “What you see is all there is”.  You are trying to solve an asset problem. Not an area you operate in regularly. Net Trade will ensure that your team understands “what is there” and the best options to immediately dispose of the problem assets. You decide the tactic that is best for you. Working with Net Trade leads to saying goodbye quickly and profitably.

Download the Guide to Saying Goodbye Quickly and Profitably 

 

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