ABSTRACT

Business today no longer has the luxury of adding inventory to cover long-distance supply chains. It is no longer possible or profitable to finance high levels of inventory even if it is carried on your balance sheet as an asset. The reality is that banks have reduced access to capital, making it difficult if not impossible to finance long supply chains. Now we must find ways to Lean out the supply chain by building only what the customer demands, buying and producing smaller lot sizes by utilizing more frequent deliveries. Turbo-charging your supply chain will not only reduce your dependence on borrowing but will actually return working capital to your business.