
It’s about Spending, Not Costs • 67
Establishing point-of-use stocking location of raw materials and compo-
nents will eliminate the need for multiple inventory locations and move-
ment of inventory. e traditional role of material management—moving
inventory and cycle counting—is made obsolete.
Receiving Inspection Spending
Receiving inspection exists because of poor supplier quality and exces-
sive inventory. Like the material management function, the overall goal is
to make the receiving inspection function obsolete. is is accomplished
primarily through supplier certication, where you establish relationships
with your key suppliers in terms of ...