By John R. Brandt
Customer demand is again booming in many markets — and manufacturers are boosting inventories back to pre-recession levels to keep up. Savvy execs at these firms will adopt recognized best practices to guarantee timely deliveries, minimal inventory and maximum cash flow.
The top three inventory-management practices (in place at more than one-third of plants around the world) are:
· Just-in-time deliveries (in place at 41% of plants)
· Pull systems with kanban signals (35%)
· Vendor-managed or -owned inventories (34%)
|Just-in-time supplier deliveries|
|Pull systems with kanban signals|
|Vendor-managed or -owned inventories|
|One-piece flow techniques|
|Quick equipment changeovers|
|RFID and computerized inventory tracking|
|None of these|
Source: 2010 MPI Manufacturing Study
About 10% of manufacturers have all three of the top practices in place (14% of U.S. plants and only 3% of international plants). Yet 19% of manufacturers have no inventory-management best practices in place (17% of U.S. plants and 25% of international plants) — a troubling sign for these firms as production volumes rise.
Does your firm have all three top practices in place?
Please look for information soon on the 2011 MPI Manufacturing Study, conducted by the Manufacturing Performance Institute (MPI), with partnership support from Thomas International Publishing Co.
This year’s study will offer a host of attractive benchmarking incentives for organizations that participate.
© 2011 The MPI Group