- cut your inventory cash investment by 50%+,
- Repurpose your inventory space for manufacturing,
- reduce your burden,
- respond faster to your customers’ demands,
- and still save money.
Does your company’s stocking system look like your grandmother’s? One hundred years ago our great grandmothers stocked up for the winter by canning, pickling, and drying foods to last until spring. Today we preserve mostly as a hobby and buy groceries and such only when we need them. Why lay out the cash and fill up a pantry with items you will not need for months? Instead buy what you need just in time to use it! Currently we are faced with the identical options in the electronics industry: buy large quantities for lower prices and safety stock benefits, or order only what is required to meet the production schedule. The former ties up cash flow, fills floor space with unused goods, requires additional insurance, and mandates environmental controls. The latter requires attention to scheduling lead time and often a higher price. How best to balance the advantages and disadvantages? Is there a source with all the benefits and none of the losses? (I would not have written this if I did not already know the answer!) Yes indeed; you could