The micro hold area is truly the last great frontier for reducing process time and waste. Here's why: process manufacturers of pharmaceuticals, cosmetics, cleansers and other consumer products regularly sample and test their raw materials or finished goods for microbiological contamination. The majority of them are using an outdated and inefficient process dating back to the 1800s that takes three, five, seven or more days to get results. During this waiting period, the full lots of raw materials or finished goods being tested are often quarantined in micro-hold. It's easy to see how reducing the time spent in micro-hold can save a fortune in supply chain efficiency. Holding inventory for several days stymies customer responsiveness. It creates waste on the production floor. It ties up valuable resources and liquidity that could otherwise be contributing to profitability. When inventory isn't getting off the floor and out the door fast enough, revenue is lost.
Source: Industry Week, http://industryweek.com
Timely, incisive articles delivered directly to your inbox.