A.T. Kearney Making Sure Lean Stocks Are Properly Nourished

Making Sure LeanStocks Are ProperlyNourishedIt’s time for a new view on leaninventory, one that is sustainableand healthy—not size zero, but rather size “right.”

Many companiesare seeking inventory levels that areunrealistically low.

Making Sure Lean Stocks Are Properly Nourished

Even leaninventoriesneed to beproperlynourished.

Making Sure Lean Stocks Are Properly Nourished

Just-in-time deliveries by private jet… when leaninventoriesbreak down

Making Sure Lean Stocks Are Properly Nourished

It’s just as bad to beunderstocked as overstocked.

Making Sure Lean Stocks Are Properly Nourished

Rightsizing inventories means balancing planning accuracy, supply resilience, and the customer o�er.

Making Sure Lean Stocks Are Properly Nourished

Four actions to rightsize inventories: minimize reliance on plans, look endto end, di�erentiate the o�er, andmeasure both overstocks andunderstocks.

Making Sure Lean Stocks Are Properly Nourished

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