A technique known as "vendor managed inventory" can allow small manufacturing companies to benefit from closer relationships with their customers and suppliers, Robert Moskowitz writes. The approach is different from supply chain management because it takes a broader perspective than the small business itself. "By working more closely with suppliers and shifting more responsibility for inventory management to them, companies can generally reduce the size of their inventories and shorten the delays between receiving an item and using it," he writes.

Related Summaries