Back to Glossary

Zero Inventory

What Is Zero Inventory?

This is an inventory management strategy used by manufacturers to optimize a supply chain by minimizing inventory entries as much as possible without sacrificing other business objectives, such as responding to consumer orders and shipping requests. Although it’s known as zero inventory, you’ll still find companies keeping some supplies in their inventory.

Zero Inventories Philosophy

The philosophy of zero inventories follows nearly the same principle as just-in-time (JIT manufacturing is when the company has an inventory only when the consumer needs the goods. There is no inventory or supplies when consumers don’t need the products).

Zero inventory management can also extend to collaborations with dropshipping companies, especially when a strong marketing brand is involved in between. Typically, the marketing brand finds customers who want a product, places an order with the manufacturer, and the dropshipping company fulfills the order.

The zero stock approach is ideal for any company that has:

  • Stable market influence;
  • Narrow product range;
  • Dependent suppliers with fast-cycle operations;
  • High volume manufacturing capacity;
  • Consistent, high-quality management.

Zero Inventories Advantages

Just like a JIT approach, zero inventory manufacturing has several business benefits, as opposed to traditional processes. Operational benefits realized by zero inventory companies include:

  • Swift flexibility when reacting to market changes;
  • Streamlined administration work and costs;
  • Optimized production by eliminating waste;
  • Better market forecasting;
  • Optimized supply chains on the need basis.

Zero Stock Examples

As a production and logistics strategy, zero stock minimizes the need or number of SKUs in a fulfillment center in a bid to cut down operational costs. The best zero stock examples include Amazon, Alibaba, and Walmart, all of which are eCommerce retail stores that take consumer orders online and send them to respective manufacturers via an automated inventory management system.

Frequently Asked Questions About Zero Stock

Is it possible to achieve zero inventories? Why or why not?

Well, this is highly unlikely because a business needs to stock some inventories for backup during emergencies or bangled deliveries.

How to achieve zero stock?

You can achieve zero stock by ordering just the right amount of raw materials or wholesale products when there is an active order request in the supply chain.

Is zero stock business model good for my business?

This approach is ideal if your business falls under the zero inventory industry. This can include an eCommerce store, food processing business, print-on-demand services, or even business consultancy.

How to manage zero inventory production?

You can manage zero inventory using the Kanban production technique, which automatically tracks production to order new parts and raw materials. The technique was invented by Taiichi Ohno.

You May Find It Interesting

EPREL Case Studies

Product Data Export To EPREL Database: 3 Success Stories

Product data entry to EPREL database: explore real cases and learn how Gepard helped comply with energy labeling regulations.

Read more
Gepard Features Hub: Digital Shelf Analytics For eCommerce

4 Key Performance Indicators in Digital Shelf Analytics Software

Explore essential digital shelf analytics KPIs such as search rankings, conversion rates, content quality, and pricing competitiveness.

Read more
EPREL Data Entry Service Providers

EPREL Data Entry Service Providers: What to Look For

EPREL data entry provider play a pivotal role in ensuring compliance, alleviating the burden of data management

Read more
Free PIM Audit Service
2 min read
Gepard Updates

Gepard PIM Launches Free PIM Audit Service

Our team understands the challenges businesses face in PIM, which is why we're thrilled to introduce our Free PIM Process Audit.

Read more
6 Key Tactics for Optimized EPREL Data Input

6 Key Tactics for Optimized EPREL Data Input

In this article, we delve into the role that EPREL data entry plays in securing adherence to regulations and accuracy in product data.

Read more
Top 5 Benefits of AI Mapping for Business

Top 5 Perks Of AI Mapping For Business

Discover how AI mapping can transform your business. Our article delves into the top five advantages of AI Mappings.

Read more
5 Key Features Your Product Data Syndication Platforms

5 Key Features Of Product Data Syndication Platform

Explore key features of the PIM tool and product content syndication for efficient product data management and successful eCommerce strategy.

Read more
Shopify-App-Interview
3 min read
Blog

Sergii Shvets Interview: Gepard’s Integration Journey With Shopify to Drive eCommerce

Explore key perspectives on the role of PIM solution in empowering businesses to navigate the evolving eCommerce platforms.

Read more
Implementing Product Information Syndication: 8 Best Practices

Implementing Product Information Syndication Software: 8 Best Practices

Implement these product data syndication best practices for eCommerce success. Boost efficiency and compliance with Gepard.

Read more
8 Main Challenges In Product Content Distribution

Product Content Distribution: 8 Main Challenges

Discover the 8 main challenges & best practices in product content distribution and how a PIM tool can address them.

Read more

Let’s Get In Touch

Need to contact us? Just use this form

Gepard Privacy Policy
Success