You could call inventory and warehouse space the twin evils of the supply chain. Both are big drags on the balance sheet. So it should come as no surprise that the two categories are lagging the recovery - or what's passing for one.

Doesn't it seem as though we are forever plunging into recession, then clawing our way back to recovery? In recent months we've seen hints that the U.S. economy is on the mend, with unemployment levels dropping. At the same time, consumer confidence is once again on the decline. It's a mixed bag by anyone's measure, but we've yet to return to pre-recession numbers in key sectors.

As business continued to grow at Darice, reportedly the country's largest full-line arts and crafts wholesaler and distributor, so did inefficiencies in its distribution system.

A conversation with Jay Hollenbeck, director of business solutions with Flextronics.