The first quarter of 2010 has shown signs of things improving. Yes, they are small signs, but they are still there. This is encouraging, and our distributors are sounding cautiously optimistic about the next six to nine months. Quoting activity is on the rise and many projects that were on the back burner are being reconsidered.

A challenge the economy still faces is inventory levels. Over the last twelve months every distributor, wholesaler and manufacturer did their best to scale back inventory to match the reduction in demand. Now that demand is starting to pick up, industries are trying to increase their inventory levels to match it. Of course the scar of bloated inventory levels is still fresh so everyone is being cautious.

As a result of many discussions that Earnest had with customers, we initiated the Less is More solution. Distributors didn’t want to buy five boxes when they only needed ninety-five pieces. We heard customers’ disdain for high minimum quantities on orders, which only added unnecessary (and ultimately expensive) inventory to a distributor’s warehouse. We responded.

While there are signs of economic improvement, we still see the need to support our customers with the Less is More approach. The fact is that inventory is a double-edged sword; it’s great when you have what the customer needs and it’s a burden when it sits on a shelf collecting dust. Here at Earnest, we are doing everything we can to make sure our distributors have inventory amounts that are relevant to their needs.

The mark of a healthy business is learning from the past and not repeating mistakes. Continuous learning and a willingness to change is key for success. Earnest continues to rethink how we manage our business to be a better partner to you.

Think back, think forward and tell us what you need to be better in 2010 and beyond. Earnest will deliver a customized solution for an Intentionally Better experience.

Sincerely,

Kirk Zehnder
President
kpz@earnestmachine.com