Companies Cut Orders, Build Up Inventory as Supply Disruptions Continue

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Ongoing supply-chain issues are forcing finance teams to rethink how they are managing customer demand, from increasing inventory to cutting the number of orders taken, or—as a last resort—canceling those that cannot be filled

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Still, Kodak has largely been able to keep up with orders despite across-the-board cost increases for materials, labor and logistics, in part because the company decided to carry more inventory on its balance sheet, Mr. Bullwinkle said. A metric ton of aluminum cost about $1,000 more in late February than in May 2021, resulting in a roughly $100 million hit to the company’s balance sheet, he said. The price per metric ton topped $3,400 by Feb. 28, compared with just over $2,400 on May 28, 2021, according to data provider FactSet Inc.

 

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