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Did the COVID-19 crisis change inventory efficiency? Evidence from Finland

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  • Olli-Pekka Hilmola

Abstract

Due to the COVID-19 pandemic, many things changed within a short notice; shutdowns as well as openings of economies and factories were unsynchronised and unpredictable throughout the world in 2020. However, demand was sustained rather well due to ultra-loose monetary policies and low interest rates. Therefore, it is needed to know, how inventory efficiency developed in this environment. This research work examines Finnish publicly traded companies from the manufacturing and retail industry and their inventory efficiency. Findings illustrate that the year 2020 did not have that much impact on inventory efficiency. It seems that trajectories which started in 2010 remain - inventory turns are getting lower at a moderate pace, and inventory investments are increasing in absolute terms. However, share of inventories from total assets remains as unchanged. In conclusion, inventory efficiency has barely changed at all (within the three used measures). Different forces and changes must have had neutralising effects on each other in 2020.

Suggested Citation

  • Olli-Pekka Hilmola, 2022. "Did the COVID-19 crisis change inventory efficiency? Evidence from Finland," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 13(3), pages 289-305.
    • Handle: RePEc:ids:ijbpsc:v:13:y:2022:i:3:p:289-305
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