Buyers reporting a decrease in commodody prices in January.
While prices are low, demand for materials is down. Only 4% of buyers polled in January plan to increase inventories and 61% said incoming orders were down.
Buyers who say business is down compared to last month
Most areas are down but in a micro economy they don’t have to be. Look over your “kingdom” and start making your mark in market share.
Electronic purchasers who say they are cutting inventory levels
With the downturn, lead times are sort and there is no need to carry much inventory. Is this a good time to test Just In Time inventory with your key suppliers?
November drop in BTS freight transportation index
The tsi index which measures changes in the output of freight transportation services, hit its lowers level since January 2004.
Buyers reporting a drop in transportation costs in January
A year ago only 4% of buyers reported freight cost in decline while 75% were reporting increases.
Amount of goods that the U.S. imports or exports by water
A report says that government support for the system of freight transport must anticipate and respond to a potential bottleneck that could serve to undermine any economic growth.
Larson note: Ok so commodity prices are down. What are your future needs in the short (6 month) term? If you can swing it I might be an excellent time to make your next purchase a little larger than normal. Or if you are looking to keep your inventory low a good tactic might be to let your suppliers can carry your inventory at current prices on their books. Ask. As for transportation, this could be the right time to lock in a long term contract or get a more favorable discount over posted rates. Sure can’t hurt to ask can it? For us at Larson’s, we are still in a double digit percent growth pattern. It is a nice feeling with the aggressive growth plan we put together for the year. Do your sales match your business plan so far?
Larson & Associates
Target Marketing & Telesales Professionals for new account acquisition
Making good businesses great and great businesses even better
P.S. We make telesales for small business affordable by offering programs down to only 15 hours a week. Maybe you could add telesales into your marketing mix call today and find out.
P.P.S. We are offering 2 free ½ hour consultations per week to talk about marketing for businesses. Call or email to get your spot to pick my brain for 30 minutes today.
*Source: Beureau of Transportation, purchasing magazine