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Commentary
Inventory - you can not live without it but no one wants it! Inventory is a necessary evil. Much has been done over the past few years to remove inventory from supply chains. The shift to JIT has dramatically reduced work in process inventory. Sharing information between buyer and sellers has also permitted an new level of planning which also reduces inventory. There is however one inventory segment that remains challenging - service parts. One of the most powerful tools to reduce service parts is sharing information rather than holding inventory. The need for fast response and the critical nature of spare parts creates a bias for having lots of material. Today with the extensive availability of both information and low cost, rapid transportation less is needed to provide quality service. Not only are inventories being shared within companies increasingly cooperation access companies is taking place. Pooling inventories has led to dramatic savings.
Best Practice | Case Study | Commentary
April 9, 2000
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