Prologis CEO Says Business Demand Is Strongest of His Career
One of the key lessons learned from the COVID-19 pandemic has been the vulnerability of supply chains and the downside of running a "lean and mean" inventory management model. Commodity prices have been rising, and even companies like Procter & Gamble are announcing that they are implementing price increases. Running with minimal inventory makes financial sense in that it is a more efficient use of capital, but when you enter periods of scarcity, you either have to pay up for inventory or watch your competitors take market share.
One of the companies in the middle of this whole phenomenon is Prologis (NYSE: PLD), which is benefiting from a massive inventory restocking that will take years to play out.
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Source Fool.com
