Warning signs in a Recession. STOCK: increasing levels and static sales, deteriorating age profile, returns, delays in invoicing. So, what can you about these things?
Reduce stocks - continually clear out old/surplus lines, set minimum/maximum for each stock line, refuse to accept early deliveries, consider buying in bulk, minimize level of buffer stocks. Rule of Thumb: Don’t let inventories rise. Better to be out of stock than have to write off investment.