Your customers expect you to have the right product in the right place at the right time. But finished goods are the most expensive inventory you carry. In this video, Steven explains the importance of controlling this inventory and several methods for better management of finished goods.
- The right product in the right place at the right time.…When managing your inventory of finished goods,…that's the goal.…There was an incident a few years ago…that serves as a good example…of what not to do.…A well known shoe company…switched to a new software system…just before the Christmas holiday season,…a time when retailers in many markets…make most of their sales.…The new software matched supply and demand…and the company pretty much made all the right products.…
But they were sent to the wrong places.…Customers in Europe had plenty of shoes to choose from…but they were not the styles Europeans wanted.…People in North America preferred those styles but had none.…They had the styles wanted by customers in Brazil.…This went on and on throughout every major market.…Like I said, all this happened…during the peak buying season.…The company had the right products in the wrong places…at the very worst time.…Finished goods must be managed very carefully…to ensure you meet your customers' demand.…
But at the same time, you can't hold too much…
- Describe what takt time is and why it’s used.
- Explain how using standardized parts reduces costs.
- Summarize the importance of quality at the source.
- Cite who should manage lean inventory.
- Describe how to create a lean culture in your business.