hidden sales illusion in early 2022

In January 2022, I did research at a manufacturer specializing in original data lines and found that their 2022 orders for each customer had surged, with customers placing orders in advance to stock up significantly; the scheduling plan rushed to June 2022. Then 2021 monthly exclusive supply plan exceeded 3%, at that time their company executives all think that the original data cable industry into the spring.

At that time I do not think so, I suggested with personal insight that the company can properly adjust the production plan; 1. 80% of the orders placed by customers first, raw materials can be 85% of the stock. 2. slow production and speed, as we all know, the manufacturing industry has a disadvantage in the order placed. OEM manufacturers also do, but the customer side needs to have sales before picking up the goods, after picking up 90% are first credit, the current credit time in the manufacturing industry is divided into 3 months and 6 months. This way 75% of the manufacturing suppliers are compressed into a broken capital chain collapse. 3. finished goods library customer orders inventory items can not exceed 25%, this will be the production department plans to do a good job of rapid response capabilities. Unless you can reach three productions and one sale. Otherwise don't blindly prepare the library.

However, their business manager believes that the customer's needs should be completed to the best of their ability, exceed the quota, and equipped with 50% of the order amount of inventory items so that customers want to send as they go.

By mid-April alone, all of the company's customer orders suddenly dropped by 85%. There was downtime all over the shop floor.