I was amused by this article. It starts with:

National Semiconductor Corp (NSM.N) posted results and a revenue outlook that beat estimates, as sales to industrial markets and improved corporate spending pushed margins to a record high.

It goes on in the second paragraph to talk about “increased demand across the board”. Then, in the same paragraph says:

…some analysts said concerns remained about a possible build-up of inventory as companies order too much in a recovering economy.

This is followed by a quote from Canaccord Adams analyst Robert Burleson.

The concerns I have are supply-chain related, and I think everybody has those. Are we over-shipping? Is there a buildup of inventory out there?

This just goes to show that inventory issues will always exist…in good times as well as bad. It reinforces my belief that all companies should establish an efficient solution for dealing with these issues so they aren’t playing catchup when the need inevitably arises.

http://bit.ly/bc6gry

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