Material movement and storage activities should be fully integrated to form a coordinated, operational system that spans receiving, inspection storage, production assembly, packaging, utilizing, order selection, shipping, transportation and the handling of returns.
- System integration should encompass the entire supply chain. It should include suppliers, manufacturers, distributors, and customers.
- Inventory level should be minimized at all stages of production and distribution while respecting considerations of process variability and customer service.
- Information flow and physical material flow should be integrated and treated as concurrent activities.
- Methods should be provided for easily identifying materials and products, for determining their location and status within facilities and within the supply