Time for Manufacturers to Throw Out Old Ideas About Inventory Management

I think the title of this article in Supply Chain Brain is misleading. By "old ideas" the author is talking about JIT (just-in-time). A lot of manufacturers have never really accepted lean and JIT principles, nor incorporated them into their businesses. 

Quote from near the end of the article: “It’s not so much let’s build up more stock,” says Lebovitz, “it’s let’s be better about how we analyze consumption rates, and resize safety stocks and order policies to make sure we’re keeping the right level of what we need and don’t need.”


The solution, for all manufacturers, isn't just to move to "just in case" inventory across the board or simply increase their inventory. It about having a rigorous #riskmanagement process to understand where disruptions might occur and to take action, or have plans in place, to mitigate the impact. Now is also the time to work on #supplychain #collaboration with partners up and downstream.



Read the full article: Time for Manufacturers to Throw Out Old Ideas About Inventory Management


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