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Perhaps 30 days of inventory isn’t enough in times of crisis, and terms should be updated. Teams should also revise expectations for tier-two and tier-three suppliers, shipping and freight partners. Setting expectations ahead of a crisis is critical to reducing risk, avoiding liability claims and mitigating potential losses.
Retail shops and eateries everywhere saw their business drop off precipitously. And even if an order from an overseas supplier were to be filled, delivery issues would be compounded by the declining number of air and ocean freight options to move products into the U.S. A retailer will have empty shelves.
8] Additionally, “[t]he PPI program covers approximately 72 percent of the service sector’s output[.]” [9] The PPI focus is at the wholesale (not retail) level. 7] Under the overall index, “PPIs are available for the output of nearly all industries in the goods-producing sectors of the U.S.
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