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Making Sure Lean Stocks Are Properly Nourished It’s time for a new view on lean inventory, one that is sustainable and healthy—not size zero, but rather size “right.”

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

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Page 1: 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.”

Page 2: A.T. Kearney Making Sure Lean Stocks Are Properly Nourished

Many companiesare seeking inventory levels that areunrealistically low.

Making Sure Lean Stocks Are Properly Nourished

Page 3: A.T. Kearney Making Sure Lean Stocks Are Properly Nourished

Even leaninventoriesneed to beproperlynourished.

Making Sure Lean Stocks Are Properly Nourished

Page 4: A.T. Kearney Making Sure Lean Stocks Are Properly Nourished

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

Making Sure Lean Stocks Are Properly Nourished

Page 5: A.T. Kearney Making Sure Lean Stocks Are Properly Nourished

It’s just as bad to beunderstocked as overstocked.

Making Sure Lean Stocks Are Properly Nourished

Page 6: A.T. Kearney 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

Page 7: A.T. Kearney 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

Page 8: A.T. Kearney Making Sure Lean Stocks Are Properly Nourished

For more information onMaking Sure Lean StocksAre Properly Nourished,please visit: www.atkearney.com/operations/ideas-insights/making-sure-lean-stocks-are-properly-nourished