Cheat Sheet: Inventory Questions for Uncertain Times

You worry about managing a business – it goes with the territory. And if you operate a business in today’s environment, it’s safe to say that you are worrying about things you never worried about before. Supply chain shocks, customer demand, staffing, and the rising costs of inputs have everyone worried. Frankly, today’s combination of issues differs from what any living businessperson has ever experienced. When entering a strange territory, it’s time to ask many questions. It’s also important to ask the right questions that pierce the fog of uncertainty.

However, it’s not enough to know the right questions to ask; you also need to understand what constitutes a good answer and recognize a troubling response when you hear it. As a turnaround expert, I’m usually called to fix problems that the company is in an existential crisis. But, before things get that bad, I think there is plenty to do to understand how prepared you are for the wild ride ahead. Below, you will find a list of questions you can use to help you see how well your business is doing and to help you manage risks moving forward.

In this article, let’s ask a series of questions about inflationary pressures on inventory and cost inputs for the business. And I’ll show you how to identify good answers from bad ones. Let’s start with awareness questions and then look at actions.