Lot size one: small quantities, big benefits
Lot size one refers to a small quantity (‘one’) of goods ordered for delivery on a specific date or manufactured in a single production run.
Today’s consumers – both in B2C and B2B contexts – don’t want ‘one size fits all’. They buy custom Nike trainers and furniture made on demand. Firms ask their suppliers for branded packaging and tailor-made services, and they want it delivered at the right time – the time that suits them best. As a result, companies that want to stay ahead of the curve have to swap their ‘one size fits all’ processes for a ‘lot size one’ approach. A logistical nightmare? Not necessarily!
Opportunities in every industry
The demand for a wider range of variants and more personalized products and services is not limited to specific sectors. The obvious examples are fashion and high-tech, but there are huge opportunities in other industries too, such as chemicals and fast-moving consumer goods. A brand of cleaning products, for example, can order customized sponges. Packaging is increasingly tailored as well, as manufacturers of consumer goods deliver their pallets to stores instead of to the retailer’s central depot.