Just-in-time (JIT) delivery is a strategy in supply-chain management intended to sync orders to suppliers with production or delivery schedules. For example, a company that sells home furniture items but doesn’t manufacture them will order the furniture from the manufacturer when a customer makes a purchase.
As a result, efficiencies are improved and inventory costs are reduced because companies only receive goods on an as-needed basis. Companies like Toyota, Dell, and McDonald’s capitalize on a JIT delivery system.
In the context of your supply chain, JIT delivery acts to minimize friction while maintaining minimal inventory and ensuring that goods are delivered on time. Businesses looking to improve responsiveness and reduce costs in their supply chain benefit from developing collaborative partnerships with experts in just-in-time delivery services, rather than attempting it alone.
NewStream is a great fit for companies looking to build an efficient supply-chain strategy or improve existing systems. With the added advantage of being a comprehensive logistics and supply-chain company, our experts provide insights and fine-tuned operational procedures that ultimately save your company money.
The advantages of just-in-time stock control (as compared to other models) include money and time savings. A JIT warehouse allows a company to spend less money on items because only the resources that are needed to fulfill orders are held. Along with keeping warehouse space needs low, production runs are shortened so that manufacturers can ship products more quickly.
Because unsold stock sitting on shelves increases inventory holding costs and takes up space, companies looking for cost-containment inventory strategies should consider utilizing a JIT delivery company like NewStream. Our JIT services mean you’ll have items only when you need them.
If you are holding inventory on site, taking advantage of just-in-time logistics will free up both space in your facility and capital so that you can invest more in other projects that help grow your company. As a just-in-time delivery service, we improve on your current stock control methods and work with you to accurately forecast demand so that you are able to remain responsive to variable customer needs.
A JIT system must include a highly responsive and flexible supply chain, because coordinating a large number of shipments can be difficult. Our experts, facility, infrastructure, and process provide integrated JIT delivery solutions that work as an extension of your organization.
The main objectives in implementing a JIT logistics process are:
A coordinated and transparent system design is essential to meeting objectives and reducing complexity and waste. In addition to a strategic process flow design, specialized infrastructure and a capable production line team are required to execute the strategic plan.
This involves state-of-the-art machinery and staff capable of problem solving and increasing operational efficiencies. NewStream has both the infrastructure and the experienced staff to help you design and execute a low-risk JIT delivery process that will help you maximize profits and reduce friction points.