Reduces stock levels and maximizes efficiency in meeting customer demands. The concept was first introduced to the world in the 1970s by Japanese manufacturers, and it has since been implemented by companies worldwide as a way to streamline their supply chain and inventory management processes.
Its basic tenet is to produce and deliver products only when they are needed, thereby minimizing the need for large storage spaces and minimizing the risk of inventory becoming obsolete. In a traditional inventory management system, products are manufactured or sourced in bulk, stored in a warehouse, and then shipped to customers as needed. However, this approach requires significant upfront costs and Lean Manufacturing consultant hazards, including the likelihood of products becoming outdated or going bad before they can be sold.
