What is Lean Inventory Management?

LEAN INVENTORY CONTROL

Distributors make money by selling their inventory to their customers but for many theinventory is their largest investment that cannot be used until it is sold. They can haveconsiderable capital tied up the inventory which is costing them in bank charges, factory space,heat, lighting, handling and recording costs, and the product becoming obsolete.Lean Inventory ManagementA Lean inventory management system allows a distributor to meet or exceed customers’expectations of product availability with the amount of each item that will maximize thedistributor’s net profits. In a Lean system, inventory is regarded as a sign of a sick factory that isin desperate need of some type of treatment. The ideal goal for a company should be to have aninventory as close to zero as possible. Effective inventory management, allows a distributor tomeet or beat their customers’ expectations of product availability while maximizing their profits