Joseph's "Just My Thoughts"

The Industrial Revolution and advances in science and technology have caused an unprecedented rise in the production of industrial goods. When products made to meet demand cannot be sold, they remain in inventory . If inventory isn’t managed properly, the ability to fulfill purchase requests quickly declines, which harms both producers and consumers. Depreciation is an accounting method that accounts for the decrease in value over time and includes these losses in production costs. So far, the global economy has experienced repeating cycles of booms and recessions . One of the main triggers is inventory. Inventory is a crucial factor that can lead to business failure, but effective inventory management can help promote greater business success. - Joseph’s “just my thoughts”

Warby Parker , an eyewear brand renowned for its direct-to-consumer (D2C) business model , and Allbirds , an eco-friendly shoe brand that went public on NASDAQ in 2021, exemplify innovation in connecting manufacturers directly with consumers without intermediaries. This model promotes a positive image by endorsing an eco-friendly business approach. However, the disclosure of the companies’ financial statements revealed that both had accumulated losses greater than anticipated. While it would have been ideal for manufacturers to supply products directly to consumers, the burden of inventory increased along with rising administrative and marketing costs. Distributors in the middle shared profits, but they also shouldered the financial burden. Choosing eco-friendly options often incurs higher costs due to the search for alternatives, which can lead to accumulating losses. Pollution negatively impacts both consumers and suppliers, and business deficits further inflict additional damage t...