"Just In Time" Inventory Management - All Posts - Ze'ev Ronen - Business Excellence

The current series of articles focuses on the important KPIs every business must monitor. I have already written many articles regarding this very important issue. However, this article focuses on shortly presented Supply Chain KPIs.

Just keep one spare tube in the drawer. When the current one is finished, take out the new one, take it out of its box, but don't throw the box away. Place the empty box in the same place as your shopping list, as a reminder of what you need to buy. By the time you use up the present tube of toothpaste, you will have bought a new tube on a routine shopping trip at the drug store or supermarket.

Many companies I have encountered search for ways to save "in the spotlight", meaning areas where it is easy to see and to attribute to a particular focal point in pricing – for example, purchasing, defective product, work costs or logistics. And an action whose objective is to strengthen employee bonds falls under Welfare and is usually considered a luxury, ending up being the first thing to cut.

 The CEO of that company led the business and marketing development and wanted to ensure that they would never lack product to supply orders, and therefore their warehouses were full of product that turned out to be defective.