Just-in-time (JIT) delivery refers to a supply chain management strategy that coordinates supplier orders with production or delivery schedules. JIT delivery is intended to improve efficiencies and reduce costs. For example, a company that sells automotive parts but doesn’t manufacture them will only order a part from the manufacturer when a customer makes a purchase.
Companies using a just-in-time delivery system require that producers are able to forecast demand accurately. JIT delivery is also a main component of a lean manufacturing system. A lean manufacturing system is a methodology in manufacturing that looks to maximize productivity and minimize waste. Because the two are linked, just-in-time delivery should be implemented to fit into the bigger picture of lean manufacturing. The following items are needed for successful JIT implementation:
Shipping, product, logistics or purchasing managers looking to optimize the supply/buy/ship lifecycle and improve on KPIs should look into JIT delivery no matter what industry they are in. Just-in-time delivery increases transparency between supplier and sellers in an effort to create a seamless supply chain process.
Unsold stock sitting on shelves increases inventory holding costs and takes up space. Any company looking for cost reduction inventory strategies can benefit from just-in-time delivery.
No matter what industry you are in, if you are holding inventory on site, start talking to a just-in-time service provider to see what they can do for you. At NewStream Enterprises, LLC, we work to improve your current stock control strategies so you can remain responsive to customers and improve upon your key competencies. Talk to one of our experts about our facilities, infrastructure, capabilities to see if just-in-time delivery is right for you.
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