Zero Inventory

Zero inventory, in simple terms, means a company doesn't keep any extra products or materials in stock. Instead, they make or order items only when needed. This approach aims to reduce waste, storage costs, and the risk of unsold items becoming outdated. Companies use real-time data and efficient production or ordering processes to match supply directly with demand. For instance, in a zero inventory system, a clothing store might use data to predict which clothing sizes and styles are most popular and then restock accordingly, avoiding excess inventory. Zero inventory can help companies be more agile and cost-effective, but it also requires precise planning and coordination to ensure products are available when customers want them.

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Michael Saifoudine, OrderCast
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