Wednesday, May 29, 2013

Lean Green Gems - The motivation

There are few things worse for the environment than mining. Coal is frequently singled out is being dirty and bad for the environment, but gem mining is no better. That’s not even bringing up the conflict stones like diamonds or emeralds. On the consumer side there are also downsides. Stores frequently have tens of thousands of dollars in inventory and on display that move extremely slowly. Slow-moving inventory is a hidden cost of these businesses, i.e., if it takes six months for a ring to sell, then the profit you make is less than it would seem because of the effect of inflation over the last six months. Both the environmental damage from mining and the economic waste of maintaining inventory can be eliminated.

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