Imagine having a manufacturing plant that is located in a congested area with storage area enough for a day’s work, what do you do to prevent a crowded work area crammed with boxes of finished goods and raw materials, web services. Manufacturing firms have long benefited from such services with materials and other components leaving the warehouse or even the sub-manufacturer, off to the plat, arriving just as it is needed. Finished goods are then trucked out as the next batch of finished goods are rolling out of packaging. It is more cost effective, demand-based production that solves the space and storage problem big-time for all.
It also takes the over-stock equation down lower which is how enterprises should be working to eliminate the amount of non-moving goods sleeping along with their value in the warehouse. Having a company produce stocks as they are sold may go against the methods of old and the supply and demand, but it makes business sense. Make only what you sell, no more no less, better business sense.