Quick Response - Definition & Meaning
What is Quick Response?
Quick response is the term used in the inventory management which means to reduce the lead time by communicating the real inventory needs quickly. It is used in the JIT inventory model by the retailers and manufacturers to communicate their exact demand quickly so that the exact inventory can be delivered just in time there by reducing the time costs and inventory costs.
The other goals that quick response tries to achieve is to implement electronic reporting systems like Barcodes, EID etc. to speed up the flow of information, reducing operating expenses, eliminating out of stock situations and forced mark-downs.
The shorter lead times thus obtained help to improve the overall efficiency & productivity in an organization by eliminating waste of time and resources. This provides the competitive advantage to the company and help it to increase its market share. Quick response is very helpful when the company is offering customized products to the customers. QRM complements the other productivity increasing tools like Total Quality Management, Six Sigma, Lean and Kaizen.
The idea of Quick Response Management (QRM) was originated in Japan in 1980’s. The basic presumption was that time can be used as a tool of sustainable competitive advantage. The idea was to compress the time used in developing, manufacturing, marketing and developing the products. It was first implemented in 1984 in the textile industries of USA and since then it has found its applications in wide range of industries.
Hence, this concludes the definition of Quick Response along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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