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Heather's avatar

Agree completely. The pandemic made it really clear.

I had been taught all the manufacturing optimization strategies for maximum profit. Not resilience. Just In Time (JIT) makes sense when you are calculating the cost of sitting on inventory that you have paid for put not sold yet, whether you are in manufacturing (so sitting on raw material) or retail (sitting on inventory). Turnover is essential for maximizing profit. Less money tied up in physical stuff is more money in the bank.

However, my dad, who owned a hardware store at the time I was taught this at work, didn’t agree. He always bought about 3 months inventory at a time. The truck came every week, but when, for example, measuring tapes went low enough to reorder, he would order 3 months worth, not one week worth.

Covid happened. Most hardware store shelves got pretty empty. We looked almost normal.

I’ve built it into my staffing too. I’m usually slightly overstaffed. But when people get sick I’m fine. And I can employ people with health issues or single parents. And on a day when we are very low and people do have to work crazy hard, they aren’t already burnt out.

I can’t prove that what I do is worth it. I could never justify it to a board of directors. But I have almost no turnover and I rarely have to personally take an unplanned shift. So I see it as a win.

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