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Lower Inventory of 30 days?
Jackson calls for lower inventory standards
Posted Friday, Oct 9, 2009, 11:48 am in Employee News
The restructuring of the U.S. auto industry should include a new standard for inventory levels, the CEO of the top U.S. dealership group said today, the Automotive News reported.
AutoNation Inc. CEO Mike Jackson said he thinks automakers should maintain a 30-day supply of inventory, half of the 60 days’ worth recommended by analysts, the trade publication said. “It has been the mantra for 50 years,” Jackson said in an address at Nova Southeastern University in Fort Lauderdale, Fla. “What other business accepts the same benchmark for 50, 60 years and says, ‘That’s fine.’”
Jackson advocated more just-in-time delivery linked to demand, like the parts delivery automakers often insist on for their plants, the paper said. “As soon as you put the parts together in a vehicle, nobody cares if it sits there for 90 days. And how you can get those ideas together in the same head is beyond me,” he said in the story. (Automotive News)
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Rick
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