Reducing Bullwhip

For Chinese manufacturers and distributors supported by Chinese manufacturers, they are at a position with stock attribute. The market strategy will be limited by safety inventory. Inventories are like a reservoir, and reservoirs require a continuous inflow and a continuous outflow to have sustainable profitability. But when the outflow of inventory continues to slow down, the risk of big water spilling over increases. This feeds back into financials in the form of reduced liquidity, increased interest rates, and continued high inventory costs.