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Imagine you are a distributor that sells 100 units a day. You keep 50 days of stock on hand to fulfill orders or incase of demand spikes. In order to keep your stock level the same, you buy 100 units a day. The manufacturer sells you 100 units a day, meeting the market. (1/n)
Demand then drops to half, 50 per day. You now have double the days of stock due to the new baseline. So you stop buying as much. You now buy 0.2 days of stock at the new baseline (so 10 units a day) for every real day that passes, until you are back to 50 days of stock. (2/n)
As a result, the manufacturer supplying you is now selling 10 units a day compared to the 50 units a day you are selling. The manufacturer is now under-shipping to the market. (3/n)
This is what undershipping is. It's not price fixing. It's the distributors wanting to maintain stock levels.
But also, sometimes distributors change how many days of stock they want. This can also affect unit sales. (4/n)The manufacturer may also now choose to reduce the amount of products they produce. They used to produce 100 units a day for the distributor, and now their demand has now reduced 90%. (5/n)
This will happen until the distributor has reached their stock target levels. You'll see this in revenue numbers. Other important phrases here are 'sell-in' (units that add to a distributor stock levels) and 'sell-through' (units sold and stock levels are maintained) (6/6)
Mottó: "A verseny jó!"
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ph A cég befektetői konferenciáján elmondta, hogy az előző két negyedévben szándékosan kevés terméket szállítottak.
