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 – whatever the cost – reduced to an unrealistic level at which the company cannot operate economically.
Experience shows that it takes an average of three to six months for production to be rebalanced.
In the meantime, the company is struggling 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 through production compensation in the following year, yields improved.
It would perhaps be even better if, at the end of the year, the controlling department did not have to compensate for what those responsible for the value chain did not succeed in doing during the year with their on-board resources: an economical value chain at a lower inventory level…
This means that the stock sits perfectly all year round and does not have to be cut at the end of the year.
On behalf of the A&K team, I wish you a peaceful holiday season, wise insights and quick decisions in the new year!
Yours
Andreas Kemmner