John Cheng

20 13-6- 13 was published in Modern Logistics.

Once, I was invited to give a lecture on "Manufacturing Inventory Control Technology and Strategy" to a group of friends from foreign companies. A buddy of mine who is engaged in lean production asked me, Mr. Cheng, I found that the inventory control techniques and strategies you mentioned are actually very traditional methods, such as demand management, product life cycle analysis, MRP, procurement, production control and replenishment methods, which I think are outdated! Do you know Toyota's "zero inventory management"? Do you know about Dell's "Zero Inventory Management"? You don't understand these things. You are from Qingdao, so you should know Haier's "zero inventory", right?

I said:

First, I have never worked in any Toyota or Dell, and I have never worked in Haier. I really don't know how they achieve "zero inventory";

Second, Toyota is an automobile industry, which can't be compared with general industries and enterprises;

Third, Dell is at least a leading enterprise in the industry, and there are many practices that you can't imitate;

Fourth, Haier imitated it, but the effect is only known to them and their suppliers;

Fifth, even the above-mentioned enterprises do not do VMI and JIT for all parts, which is the so-called zero inventory;

Sixth, the situation of enterprises is different, such as product mix, material requirements, partners, personnel level and technological ability. The effect of imitating a cat and painting a tiger can only be counterproductive, harming others and harming themselves;

Seventh, I remember when I spoke with Dr. Fang Dianjun, the chief representative of German Logistics Research Institute in China, he said that what we learned in China, such as VMI (the theme of his speech at that time), we often only learned a lot of fur, and rarely studied and practiced it in depth. Graduated from Germany, Ph.D. in Logistics, and has many years of practical experience, giving keynote speeches on VMI to the following hundreds of enterprises. Don't you think it's a little "make a mountain out of a molehill" You are kidding!

Eighth, have you read the recommendation preface written by Mr. Liu, an American supply chain expert, in my monograph "Manufacturing Inventory Control Skills"? Humboldt said, "This is not a book that advocates zero inventory. Inventory exists for its own reasons. In the words of Mr. Cheng, inventory is the "adhesive" of enterprises. Killing stocks with a stick, in my opinion, is either chasing fashion, ignorance or ulterior motives. "

Ninth, I very much agree with Dr. Fang's words and Mr. Wang's comments, especially the last sentence, killing the stock with one stick. In my opinion, it is either following the fashion, ignorance or ulterior motives. I quite agree with this statement. Now many colleagues in China are actually playing with fashion, concepts, ignorance and ulterior motives. I once wrote an article, which mentioned that domestic entrepreneurs, especially those who concentrate on manufacturing, are hard enough and pitiful enough. Some people also want to deceive people with a few fashionable concepts. How can you stand it? !

Tenth, inventory exists objectively. You can't disappear without understanding a few concepts. It needs you to do more basic work to help enterprises straighten out basic needs, supply chain management processes, organizational structure and optimize information systems such as ERP. Then the enterprise may gain something. As a consultant, you will also gain something.

Eleventh, enterprises and entrepreneurs who like to play with concepts have almost disappeared or are disappearing. Of course, there will be latecomers, because there are always people who advance wave after wave and enjoy it, but this is an impetuous performance, which is not what a real entrepreneur should pursue-except liars.

Twelfth, and finally, I have never opposed lean and lean production. On the contrary, I quite agree with the idea of lean, but I object to the lean way of some people. I suffered greatly when I was in F company, but it was a part-time job and a crazy behavior from top to bottom. I beg to differ. I have been engaged in supply chain management 18 years or more. I have been actively studying and practicing some of the latest concepts and practices in the supply chain, but I dare not say that I know lean. There is a simple reason. I am still far from "excellent". Speaking of it, there are 80 or 90 people here, and most of them are from Fortune 500 companies, mostly engaged in supply chain, ERP, production and operation. How many people dare to say that they "know lean"?

Only one person raised his hand.