Just-in-time (JIT), also referred to as lean manufacturing is an inventory strategy adopted by manufacturers to increase efficiency by receiving goods only as needed from a supplier. The main purpose of implementing this strategy is to lower inventory costs and decrease waste.
Distribution management is the process of overseeing product movement from the supplier or manufacturer to either a storage facility or directly to the point of sale. From outsourcing raw materials, to manufacturing a final product, distribution management oversees this entire process with the objective of streamlining it. Companies frequently lack the time and expertise to successfully manage these operations, relying instead on a distribution logistics company to supply raw materials or finished products in a safe and timely manner.
The kitting process in manufacturing is the taking of two or more related parts and putting them together in a single kit, typically under one SKU. Purchasing several individual parts is time consuming, kits simplify this process as parts are pre-packaged and occasionally pre-assembled. On the production floor, workers can utilize kits by implementing them into their product build, taking less time to locate individual products.
The automotive supply chain is one of the most complexes in the world. This industry relies heavily on third-party companies to work together to deliver thousands of parts that are needed to complete manufacturing processes to deliver high-quality products. Automotive supply chain companies are constantly implementing new technology, allowing them access to thousands of inventories and with the help of a global logistics network, goods can be shipped anywhere in the world. Here are the top 5 supply chain challenges the automotive industry is facing in 2021.
Manufacturers may enjoy the concept of adding packaging and kitting services, but they must first determine which kind of kitting operations best suit their company’s needs. Pre-kitting, product kitting, just-in-time kitting, and material kitting are the four types of kitting that a manufacturer can use. Among these four, material kitting is the most common kitting approach used by manufacturers for a wide range of small components or customized products since it saves time, increases assembly efficiency, and adds an extra layer of quality control that can help eliminate errors.
