Supply and Demand - Ammo Conundrum
Covid has changed a lot of things. Some industries are flourishing; others are really struggling. I know one thing covid has done is expose the supply chain issues in many companies.
Supply is a balancing act of how much to have and how long it will last in inventory. Just-in-time inventory has been so critical for companies to become more efficient. Yet it really exposed a lot of weaknesses in the ammunition manufacturers.
Ammunition is a hot topic right now. Everyone is wondering where the supply is. So where does it go in times of hyper-demand?? All the components are out too. This is fairly easy as the companies like Federal are putting all the components back into the ammo they are producing creating a shortage on the supply end of finished goods. So why not just expand, the demand is there right?
Well, that leaves us to the next issue when demand is driven by forces that are short-lived. If we rewind about a year ago ammo manufacturers were over capacity and facing layoffs. Now we are in hyper demand and basically, they cannot produce enough. Machinery and tooling are expensive and the labor market is different due to restrictions. It is truly a balancing act that will always be part of a business.
Suppliers are ultra important and here at Patriot, we want to help take that uneasiness out of planning for the next 2 months. Customers are hard to come by, why jeopardize them due to supply chain issues?
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