The Internet and information technology (IT) has benefited greatly the process
of the supply chain management, but every echelon of the supply chain must be
connected to each other and working at the same speed.
In every supply chain,
the weakest link in the chain will define the speed of the entire system.
For the majority of manufacturers, the plant floor is the weakest link in
their supply chains, yet that is where they're apt to find the biggest payoff
<Tab/>In today's business world, enterprises strive to be lean by
maintaining low inventory to avoid unnecessary costs in inventory management
When it comes to inventory control the Internet plays an innovative and
productive part in the factory floor of an organization.
constant awareness of real-time data of the supply chain will help the factory
floor inventory managers to maintain the proper level of inventory thus
minimizing inventory related costs.
<Tab/>This paper discusses the benefits of connecting an organization's
factory floor in the Internet in relation to inventory control.
details the actions that, in accordance to experts, should be taken into
consideration when dealing with IT and the Internet to maximize those
benefits. This paper will provide facts and opinions from different reports
and write-ups from subject matter experts, professional journals, and other
Inventory results from at least one of two conditions, says Kevin Prouty,
research director at AMR Research (Boston, MA). "Ignorance equals inventory.
Or variability equals inventory," (Even the leanest of automotive
manufacturing operations, namely Toyota, keeps inventory, he adds.) In the
first condition, if the organization doesn't know what's going on upstream or
downstream, the organization must keep inventory on hand. In the second
condition, the organization may have all the inventory in the world, yet they
still might not have enough for optimized manufacturing because of the
variability driven by demand spikes, such as customer orders, the
manufacturing processes themselves, logistical upsets, or a combination