Signify shines a light on inventory to tackle “crazy bullwhip”

China 2899 Cons. Discr. - Durables 454 Earnings 667 European Union 774 Quote Watch 438 U.S. 5200

Lighting manufacturer Signify reported Q2’21 revenue growth of 9.6% year over year but was “hampered by ongoing supply constraints, in particular, component shortages and logistics”, according to CEO Eric Rondolat. That may have trimmed the equivalent of 2.6% from sales in H1’21. A reversal of the trend “takes, obviously, a bit more time because the supply chain has been taken by a crazy bullwhip effect”, Mr. Rondoblat stated. That refers to the amplified effect of small demand changes on upstream supply chains due to imperfect and delayed information flows. To address that the company i...

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