![]() The inventory requirements are lower, and delivery times are faster. There are undoubtedly many benefits to implementing Just in Time logistics. The flow of goods across the supply chain becomes more flexible and adaptable. Thus, the firm can satisfy different customer requirements. Shorter lead times mean it’s possible to fulfill many orders on short notice. Managers can quickly modify the supply chain to suit new demands. Having JIT capabilities enables a firm to be more responsive. That’s literally in the name, in case you forget! Thus, Just in Time logistics helps optimize lead times and enable faster fulfillment. Moreover, JIT operations focus on constantly minimizing wasted time. If the sub-processes take the same time as before, but the waiting in between each step in the process gets shorter, then the total time to delivery will also get shorter. Benefit 3: Faster DeliveriesĪnother consequence of reduced inventory is a shorter waiting time at inventory. Thus, reducing the number of goods stuck in inventory helps minimize operational costs and increase profit margins. And every extra minute spent in inventory between deliveries means added costs. Storing and managing inventory is costly. One of the effects of reduced inventory is the corresponding reduced inventory storage costs. But they are dramatically reduced if the firm successfully implements the JIT process. Of course, in the real world there are always some inventory requirements. If the item arrives just before the start of the next process, then theoretically there’s no need for any inventory. The most obvious benefit of Just in Time logistics is reduced inventory throughout the supply chain. Let’s look at some of the benefits and strategic advantages that Just in Time logistics provide. Firms have also adapted it for various aspects of the logistics process. Over the last few decades, organizations over the world have adopted the technique. JIT helped Toyota achieve a high level of efficiency in manufacturing. Toyota was the first company to apply it and perfect it for manufacturing processes. Like many other management practices, the Just in Time philosophy originated in Japan in the 1970s. The firm can potentially manufacture, store, or ship an item when a customer needs one and not before. Thus, Just in Time logistics aims to minimize inventory (which can be expensive to store), reduce delivery time, and eliminate any wastage, such as unneeded items. The idea behind JIT logistics is to ensure that the item arrives at the warehouse at the moment the manufacturer can ship it to the customer. Then later, the item’s manufacturer may ship it to the customer from the warehouse. For example, a driver may deliver a finished manufactured item for storage at a warehouse. ![]() Think about how an item usually moves through various steps in the supply chain process. In this article, we’ll discuss its details, benefits, and drawbacks, and you’ll learn how you can prepare so you can implement it successfully. Give us a try! We will gladly consult with you personally, by telephone or video conference.Just in Time (JIT) logistics is an inventory management strategy that aims to deliver goods immediately before they’re needed for the next stage in the logistics process. Our daily routes are currently to and from Japan, South Africa and the USA, which enables us to cost-effectively form our own consolidations for both air and seafreight. We also consult on challenging subjects such as VDA- EDI Automotive requirements or temperature sensitive goods in your global distribution. ![]() In particular we are experienced in preparing deliveries for JIT production lines with supported supply chain management. In addition, our adjoining warehouse is configured to provide complete and controlled services and to implement individual requirements for acceptance, packing/repacking, labelling and delivery of goods to the final consignee. The team identifies with your products and will find the best solutions for special requests and requirements. With our experiences team, we offer specialised and comprehensive logistics services that exceed the boundaries in quality and service.Įach customer is allocated a dedicated contact person who can offer personalised service. ![]()
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