With intensified competition on the market , product delivery requirements are getting higher and higher. In order to obtain the product, the market situation may have changed, and the product has been sold and even becomes poorly sold.
For companies with the concept of "Customer is God", most of them want to keep the materials and finished products inventory for 1-2 months in order to meet the needs of customers. On the surface, large inventories, whether in material or finished form, present significant risks that could cause enterprises to get into trouble, or even cause the enterprises to fall into difficulties, On the other hand, even though the goods can be ordered at any time, but a large amount of inventory occupies a large amount of liquidity, weakening the profitability of enterprises Crash.
To avoid risks, try to adapt to the market, it is a good way to shorten the delivery through lean production.