A business running without inventory must rely on a stream lined and responsive supply chain where customer orders are satisfied directly from suppliers. To achieve this the business needs to develop a close integration and frictionless relations between customer orders, suppliers and potentially manufacture, so called lean production. The idea is that the supplies needed to satisfy customer orders will be provided Just-In-Time. Even with such techniques it is unlikely that business could run without any inventory, the exception perhaps being a simple intermediary business providing retail drop-shipping.
Lew
Lead developer of Business Plan Quick Builder and BizzLink
Blog inspired by our response to a Quota question
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