IInformation is increasingly being used as a substitute for inventory. For instance, a warehouse manager
that is in constant contact with a supplier of his/her stocks need not hold traditional, high levels of
inventory. By being “connected”, the supplier realizes when the warehouse is in need of product and can make accommodations of product processing and shipping accordingly. Improved, faster means of transportation also prevent manufacturers and merchandisers from holding high levels of inventory. Poor packaging can lead to product damage in transit. Management should either improve packaging or seek a transportation mode that is more stable and less damage inducing. Regardless, greater costs will be incurred upfront – though they are likely to be offset with reduced costs of product recollection and rework.