For automotive manufacturers like Ford, the supply of raw materials is a critical factor. Steel, rubber, and electronics components must be available in the right quantities and at the right time. Ford uses a combination of vendor-managed inventory (VMI) and just-in-time (JIT) principles. Vendors are responsible for monitoring the inventory levels of certain materials at Ford's plants and replenishing them as needed. This reduces Ford's administrative burden and ensures a steady supply. At the same time, for critical components, JIT is employed to minimize inventory holding costs. For example, tires are delivered to the assembly line just in time for installation, reducing storage space and potential damage.

In the aerospace industry, inventory management is even more complex due to the high value and long lead times of components. Boeing has to manage a vast inventory of parts, some of which may take years to manufacture. To address this, they use inventory optimization software that takes into account factors such as production schedules, maintenance requirements, and potential supply chain disruptions. This software helps them make decisions about when to order, how much to order, and where to store inventory. It also enables them to identify obsolete or slow-moving inventory and take appropriate action.

Lean manufacturing principles have had a profound impact on inventory management in all industries. By eliminating waste and focusing on value-added activities, manufacturers can reduce inventory levels. For example, Toyota pioneered the concept of kanban, a visual signaling system that controls the flow of materials in the production process. This system ensures that only the necessary materials are brought to the production line, reducing overproduction and inventory waste. Manufacturers can implement similar systems to improve their inventory management and production efficiency.

Employee training and cross-functional collaboration are essential for successful inventory management in manufacturing. Workers need to understand the importance of inventory control and how their actions impact the overall production process. Engineers, production managers, and supply chain professionals must work together to identify bottlenecks and implement solutions. This collaborative approach can lead to continuous improvement and a more efficient manufacturing operation.