Supply Chain Graphic of the Week - Sectors with the Greatest Inventory Changes
Wireless and Networking Equipment See Big Drop in DIO, While Food and Drug Retailing Sees the Biggest Rise
By
SCDigest Editorial Staff
What industry sectors had the greatest changes in inventory levels?
The chart below, created by SCDigest from data in the latest CFO magazine/REL annual working capital report, shows the industries that had the greatest changes in average Days Inventory Outstanding (DIO) from 2006-07. As we note in a most extensive analysis, a decrease in DIO is in general a good thing, and an increase a not so good thing. (See
Digging Through the Inventory Numbers.)
Industry sectors not listed in the chart had modest changes in DIO, in the range of +/- 2%.
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