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3. Lean Inventory Tools
Lean production is a concept that dates back to the 1940s, created by Toyota and inspired
by Henry Ford‘s
just-in-time production
. The idea is that companies create only what‘s needed at
the moment, determined by current and projected customer demand. Before lean production,
manufacturers would create and house large surpluses of goods. This resulted in
massive
inefficiencies
, wasting time and effort.
The overall goal of this practice is to optimize your production planning by cutting down
on warehousing space, inventory costs and the different procedures of storing excess
inventory. Lean inventory tools can provide quite a bit of return on investment for a business,
decreasing the need for warehouse space and streamlining their labor force.
While lean production principles can be implemented without SCM tools, this type of supply
chain management software takes efficiency to the next level. By using demand forecasts,
materials planning, scheduling and supply chain simulation tools, you‘re able to gain a much
deeper insight into the future of your supply chain. These tools make planning production in
alignment with lean manufacturing principles much easier.
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