Warehouses are costly for companies to operate. The cost of the building, labour and inventory of a warehouse can be a significant amount. Hence, most companies would like to improve on their warehouse space efficiency, be it by streamlining the placement and picking of goods, reducing the time of goods being stored in the warehouse, or automating as much as possible to reduce labour costs while improving the accuracy of the warehousing activities.
This can improve the maximize the space utilization and efficiency of the warehouse at the same time, ensuring that it is possible to store as many items as possible in the most optimum space.
“Lean” refers to a systematic approach to enhancing value in a company’s inventory by identifying and eliminating waste of materials, effort and time through continuous improvement in pursuit of perfection.
Building and maintaining a lean inventory management revolves around six main attributes: These are:
1. Demand Management:
Providing inventory when requested by the customer. For effective demand management, companies need to plan their sales and operations, check the inventory management practices, demand signal and demand collaboration.