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Inventory crunch meaning12/5/2023 ![]() ![]() A broader definition might include steps to gather the data to be processed or the numbers to be crunched. A narrow definition of number crunching would include only the calculation and organization of existing data. That might include evaluating the overall cost for a new research and development project or how to maximize the profitability of a new marketing campaign. Number crunching is a form of objective analysis in that it uses quantitative data from which certain unambiguous conclusions can be drawn. That organizing often includes running calculations and arranging data in charts, graphs and other visualizations. It generally refers to taking large amounts of related numerical data and organizing it into a more useful format. The term “number crunching” describes the act of processing numerical data. Like crunching the numbers to determine a monthly payment on a home after accounting for mortgage, insurance, taxes and other cost to see if you can afford the monthly out-of-pocket.īut in a business context, what does crunching the numbers mean? What are the benefits and drawbacks of number crunching? And what kinds of tools are available to those tasked with number crunching? What Is Number Crunching? Most people have no doubt heard the phrase “number crunching.” It conjures up images of processing large amounts of data to make some sort of conclusion. ![]() This sensitive and explosive combination means that, plain and simple, moving products around has become increasingly expensive, and the margin for supply chain and inventory management errors has fallen to near zero.East, Nordics and Other Regions (opens in new tab) Traffic in ports increased sharply in 2021, following a counter-cycle decay in 2020, coupled with an exponential increase in container prices (fivefold increase per 40ft container comparing with January 2020). However, behemoths such as worldwide supply chains and logistical plans do not change overnight, and significant delays started to appear on the supplier’s end of these supply chains. Swiftly the economy gained traction and sped up again: customers were eager to taste life back as they used to, and soon there was another boost in demand. And then, just as quickly as they were imposed, thanks to herculean scientific, medical and logistical efforts, lockdowns and travel restrictions were lifted, almost worldwide. Parallel to this, COVID-19 cases rose at alarming speeds, meaning that suppliers and industries frequently found themselves with capacity limitations due to worker shortage, thus struggling to meet demand. Many retailers and shops were not ready for this and lagged in adapting their business and supply chain models to this new reality. This meant that, at a rather sudden pace, customers were locked within their homes, with little to none cultural and recreational events at their disposal and without social gatherings where to spend “play money” – as a whole, the world consumer behavior turned its focus to e-commerce and online retailers. The COVID-19 pandemic was unquestionably a catalyst event: the number of factories that stopped production altogether during the first few months of 2020, along with national lockdowns and stay at home government policies brought the world commercial landscape to a halt (like a bright and endearing sidenote, these lockdowns and stoppages also reflected themselves on the environment and pollutant emissions across highly industrialized areas). This combination of factors has multiplied the stress on lean and bare-bones supply chains, creating a dangerous bullwhip effect, leaving impatient customers waiting in lines for products, retailers struggling to retain customer attention and service level goals, and suppliers dealing with insufficient capacity, with only a key question in common: how will it be from now on? But to understand where we are going, we must first question ourselves: how did we get here? The global supply chain as we know it has been exposed to its weaknesses in the recent past – whether because of a never-before/seen global pandemic, surging e-commerce demand or dynamic labor and social fabric, the challenges we are currently facing seem insurmountable and overwhelming. ![]()
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