what is zero inventory

What Is Zero Inventory?

Zero inventory is the strategy of holding little to no inventory on-hand, instead aiming to obtain products as needed. Related to and often used interchangeably with just-in-time inventory, zero inventory strategies allow for space to be utilized in more meaningful ways instead of for inventory storage. If a company has a reliable supply chain, they may choose not to store extra product on-hand and instead use a zero-inventory strategy to obtain goods or supplies as they are needed.