They’re buying in a different way. And we need to make sure our systems work for that different way. I hope that’s helpful.
Holden Lewis: And specific on pricing, if you recall during the period of tariffs, we didn’t do a great job sort of offsetting all the tariffs and inflation that occurred during that period of time. And the organization kind of buckled down and developed since then, what we call the pricing review tool, PRT and I think what you’ve seen over the last few years in a period first of fairly significant inflation and now a period of perhaps modest deflation is I think you’ve seen that tool and our organization’s ability to utilize it, result in a much better outcome. We — there’s the occasional blitz here and there. We didn’t quite get all the inflation on fasteners. So that’s come back. In fourth quarter, I think we got a little bit behind on a certain area.
But for the most part, we’ve been able to be price cost neutral for the entirety of this period of inflation and deflation. And I think it really is reflective of the organization’s ability to deploy technology solutions to problems that we run into every day. The other thing that I would say is, from an inventory standpoint, we talked about how inventories dropped a lot because of the — we’re unwinding or sort of harvesting some of the investments. But we peaked from a days on hand standpoint between 185 and 190 days. We’re currently sitting between 135 and 140. That’s not just because of buying inventory and then harvesting it related to pandemic. That relates to a lot of things the organization did in terms of how it views branch inventory strategically in terms of what’s in our hub versus where should inventory be, improving the velocity.
And I think the fact that we’re able to improve the overall performance of our assets, even in an environment where we’re getting a tremendous amount of pressure because of the needs of the pandemic when it started and as it was fading really reflects the organization’s ability to do more than one thing at once. And I think the organization can be proud of itself how it’s managed a lot of the things that have come up over the course of the past 4 or 5 years.
Josh Pokrzywinski: Got it. I appreciate it. That’s comprehensive. Maybe just a quick follow-up. As you’ve seen things decelerate and maybe disinflate a little bit, is the competitive landscape change? I know you guys don’t really see it maybe some of the way other folks do in the space given your business model but anything you’d comment on competition?
Dan Florness: Yes, I don’t think the competitive landscape has changed, if you look at it from a product perspective. And I think one element that’s there, too, is while the — there’s more than one element of inflation and there’s more than one aspect of cost. There’s inflation that we saw in product costs. There’s inflation that we saw in transportation, container costs, things like that. Product cost dynamics are different than the container and transportation element. The third element which is really relevant for our customers and for their supply chain is the cost of labor. There is no deflation in labor. I’ll guarantee you that. There continues to be inflation in labor. We do have more success in recruiting. We — but we are not unique.
All businesses are seeing inflation in that arena until this day. And part of — the nice thing about the total cost of ownership approach we take with our customer is we’re really able to understand all those cost components and have intelligent conversations with the customers that they’re not a motion conversation, the fact and tactic conversations which allows both us and our customers together to make better choices on puts and takes. But there are inflation elements still in the business. There are some deflation elements in the business. Container is coming across the ocean is cheaper today than it was 1.5 years ago or a year ago.
