Traditional Culture Encyclopedia - Traditional culture - Management agent of zero inventory management

Management agent of zero inventory management

Although the traditional warehouse management has brought a series of benefits to enterprises, such as: it can avoid shortage and ensure the supply to customers; Respond to unexpected changes; Ensure the continuity of production and operation process; Shorten the supply cycle; Respond to seasonal demand fluctuation of products; Earn profits through price speculation. However, its shortcomings are also obvious: warehousing takes up a lot of money, increasing interest expenses on inventory, increasing real estate investment in warehousing and so on. What's more, it may cover up the management defects of enterprises, which is not conducive to clarifying responsibilities and improving management level. At the same time, with the development of production and the intensification of competition, it is more and more urgent for enterprises to reduce costs, so "zero inventory" came into being as a new way to reduce costs and improve management level.