Steve Jobs was against warehouses

In a compelling video that continues to inspire entrepreneurs and industry professionals,
Steve Jobs shared his profound perspectives on manufacturing.

His visionary ideas shed light on key principles that can revolutionize the way businesses approach production processes.

Let’s delve deeper into Jobs’ insights to understand how they can unlock efficiency and foster innovation in the manufacturing realm.


1) Warehouses: Not a Blessing, but a Burden!

Warehouses have long been considered essential components of the manufacturing ecosystem.

However, Jobs challenged this notion, highlighting the inherent risks of excessive inventory accumulation.

He believed that filling warehouses with surplus goods hindered efficiency and tied up valuable resources.

By encouraging companies to minimize inventory and adopt just-in-time delivery strategies, Jobs aimed to streamline operations and eliminate unnecessary costs.


2) High Inventory: The Hidden Quality Gap!

One of the most significant drawbacks of maintaining a high inventory, as emphasized by Jobs, is the difficulty in promptly identifying defective parts and closing the quality loop with suppliers.

He stressed the importance of minimizing inventory to ensure superior product quality.

By reducing the volume of stored goods, manufacturers can enhance their ability to detect flaws, address quality issues promptly, and forge stronger partnerships with suppliers.



3) Stranded Cash and Interest Payments!

Jobs astutely pointed out that maintaining a large inventory equates to blocked capital and interest payments to banks.

This financial burden restricts a company’s ability to invest in innovation and growth.

By reducing inventory levels, businesses can free up capital, allowing them to allocate funds to more productive areas such as research and development, technology upgrades, and talent acquisition.



4) Daily Deliveries, On-Site!

Jobs advocated for a paradigm shift in the delivery process, emphasizing the importance of daily deliveries with direct point-of-use delivery to the shop floor.

This approach minimizes inventory, reduces handling costs, and optimizes production efficiency.

By leveraging streamlined delivery systems, manufacturers can enhance agility, respond quickly to market demands, and eliminate waste associated with excess inventory.


5) Embracing In-House Robotics: Apple’s Moonshine!

At the forefront of innovation, Apple embarked on a remarkable journey by developing both hardware and software for its robots.

Jobs referred to this as an advanced form of in-house innovation—a moonshine that enabled Apple to have greater control over the production process, from design to execution.

This approach not only expedited the manufacturing timeline but also yielded cost efficiencies and empowered Apple to push the boundaries of technological advancement.


6) Building Robots In-House: A Game-Changer!

Apple’s experience with in-house robotics highlighted the myriad benefits of developing robots internally.

The decision to build their own robots proved to be not only cost-effective but also accelerated the manufacturing process and improved overall effectiveness.

By taking ownership of critical components, Apple reduced reliance on external suppliers, enhanced customization capabilities, and gained a competitive edge in the market.




Steve Jobs’ manufacturing insights continue to resonate as timeless principles for success.

By challenging traditional manufacturing practices and embracing innovation, businesses can unlock efficiency, reduce costs, and drive sustainable growth.

Minimizing inventory, optimizing delivery processes, and investing in in-house capabilities are powerful strategies to streamline operations and foster a culture of continuous improvement.

Let us draw inspiration from Jobs’ wisdom and apply these principles to propel our manufacturing endeavors towards excellence and innovation.


A great Lean Lesson from Steve Jobs!

Thanks to Uttana On Line to have published this video!