Lean inventory and how we handle it at The Closet Doctor

Inventory is money sitting on the shelf. If you are not organized and don’t have an inventory system, you can literally have thousands of dollars of inventoried items on the shelf and not have what you need. Inventory is one of the 8 deadly wastes of lean and I have learned that lesson the hard way. You have to have an inventory system or inventory process to make sure you have the correct items in stock when you need them. This video shows our ordering and inventory systems and process for The Closet Doctor.
Lean inventory management is important to keep from wasting money. Kanban cards work great for inventory, better than any ERP system and are simple to use. Using kahnban cards allows everyone in the facility to request that things get ordered when needed. This is especially important in small shops that dont have a dedicated inventory manager and helps them keep money in the bank and not stored in inventory that wont be used. Inventory is one of the 8 deadly wastes in the Toyota production system and good management of inventory by keeping the least amount of items on had helps small cabinet and closet shops stay profitable.

[@BradyPuryear]

Great advice Derek. Cashflow is king! This is always a battle. Some fabric we buy in yards only needing about 20 yards is $18 per yard if we buy 60+ but the price below that is $32 so 100% more than if we buy triple what we need. Working out contacts with vendors to commit to annual volume and have stock when we need it without buying it all up front is the great battle of the supply chain crisis.

[@lewf7063]

Hi Derek. This is Lew Ferretti from TAG Hardware. I’m just seeing this video. It’s an excellent overview of a well organized closet shop. Very good information here !

[@jerrychandler7094]

Great work, Derrek! We have endured all of those issues as well (minus the foil doors... we don't do them). Inventory levels are dropping, the floor space is opening up. Thank God for Lean!

[@WoodWorks_Kasiri]

Nice

[@derrekholland5207]

Thanks

[@braingrenade]

Loved the video, I’m in the process of figuring out how to organize my shop and I’m seeing what ideas you use that I could apply to my own situation. It’s quite a bit different. But this is inspiring.

[@paulnguyen1370]

Hi Derrek, thank you for your content. So valuable.. so happy to have found this video. I'd like to thankyou for sharing your knowledge and showing the simplicity of lean.

[@jirimunzar7559]

Hello nice Job what kind of rack do you use for you single sheets?

[@derrekholland5207]

We custom built that in house

[@nickweishaar2433]

Where did you get your inventory cards?

[@derrekholland5207]

Nick I had those made from a laser cutting place specifically to fit the bins from Uline. We also use the Uline weatherproof label. I can sell you them in quantity if you are interested.

[@nickweishaar2433]

@@derrekholland5207 yes I am very interested in those tags. I've been banging my head trying to find them.