ABSTRACT
Best practice in inventory management provides excellent availability for customers without significant stockholding. The idea may be simple, but the application of lean supply has given businesses the opportunity to decimate stockholding without affecting customers. Lean thinking is that continuous improvement is an essential part of operations. If the business is not making changes, then it is falling behind the competition – because they are making changes. Lean operations not only reduce the inventory value, but also mean less inventory to count and manage. Global competition and customer pressure has made it imperative that businesses apply lean principles to survive. Optimising lean supply works best in repetitive processes, whether in warehousing or in manufacturing. Many failures to implement lean supply result from poor control of quality, complacency or lack of understanding, resulting in incorrect stock levels. Lean businesses have fewer errors, panics and changes in plans and inventory, which means that less management is required.
