{"id":2802,"date":"2018-08-27T09:34:05","date_gmt":"2018-08-27T16:34:05","guid":{"rendered":"https:\/\/www.hollingsworthllc.com\/?p=2802"},"modified":"2024-05-28T08:51:28","modified_gmt":"2024-05-28T15:51:28","slug":"how-just-in-time-delivery-affects-supply-chain-management","status":"publish","type":"post","link":"https:\/\/www.hollingsworthllc.com\/how-just-in-time-delivery-affects-supply-chain-management\/","title":{"rendered":"How Just-In-Time Delivery Affects Supply Chain Management"},"content":{"rendered":"

[vc_row type=”container”][vc_column][vc_column_text]The speed of order delivery is an increasingly examined aspect of supply chain management, particularly with constantly expanding consumer demands for same- and next-day delivery and other features. Just-In-Time (JIT) delivery<\/a> is an inventory management strategy that helps facilitate speedier order fulfillment with particular applications in raw materials orders and manufacturing.<\/p>\n

Since production for just in time delivery<\/span><\/a> happens only for specific customer orders, just-in-time services are somewhat backward from normal supply chain fulfillment in the way that goods are pulled through the supply chain versus pushed through. So, the production process only begins when a customer placed an order, and inventory stock is only delivered as-needed.<\/p>\n

What Does JIT Delivery Require?<\/strong><\/b><\/h3>\n

By reducing the amount of materials held in stock, JIT delivery can help improve profits. Just-In-Time services involve the process of producing and delivering finished goods at the time they are required for sale, partly finished goods at the time needed for assembly into finished goods, parts and components required for partly finished goods, or materials that are needed to be made into those parts.[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”container” css=”.vc_custom_1716865467778{padding-top: 30px !important;padding-bottom: 15px !important;background-image: url(https:\/\/www.hollingsworthllc.com\/wp-content\/uploads\/2024\/05\/JIT-01.png?id=24864) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: contain !important;}”][vc_column][vc_column_text]<\/p>\n

\n

Characteristics of<\/span><\/h2>\n

Just-In-Time Delivery<\/span><\/p>\n<\/div>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”container” css=”.vc_custom_1549057182481{margin-bottom: 0px !important;}”][vc_column css=”.vc_custom_1549057215629{margin-bottom: 0px !important;}”][vc_column_text]Supply chain assembly and packaging operations don’t store the materials in on-site warehouses; the materials are received only when they are ready to be implemented into outgoing orders. Therefore, just in time logistics allows supply chain management companies to save on inventory costs and allow more usable space in their warehouses for components that are ordered more variably.<\/p>\n

While just in time delivery enables supply chain companies to reduce their costs for inventory storage and management, it does present an alternative challenge of accurately forecasting demand.<\/p>\n

Demand forecasting is secondary to meeting customer expectations, and today’s customers (be they the end consumer or business customers that serve the end consumer) value flexibility and responsiveness to a remarkable degree. It’s not enough to make processes more efficient when working to reduce costs. For example, many customers appreciate the just in time inventory company’s ability to send additional supplies on tight deadlines (particularly when a delivery wasn’t scheduled ahead) or accommodate rapid demand changes.<\/p>\n

In order for it to be successful, just-in-time delivery requires a highly responsive, flexible supply chain. The level of responsiveness is defined by how quickly the supply chain can adjust to accommodate the four primary areas of flexibility in response to an external stimulus such as a customer order:[\/vc_column_text][vc_row_inner][vc_column_inner width=”1\/4″][vc_single_image image=”24867″ img_size=”100×100″ alignment=”center” css=”.vc_custom_1716865479768{margin-top: 0px !important;}”][vc_column_text]<\/p>\n

1. PRODUCT<\/strong><\/b><\/p>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/4″ offset=”vc_col-xs-12″][vc_single_image image=”24870″ img_size=”100×100″ alignment=”center” css=”.vc_custom_1716865488356{margin-top: 0px !important;}”][vc_column_text]<\/p>\n

2. COMPONENT MIX<\/strong><\/b><\/p>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/4″][vc_single_image image=”24868″ img_size=”100×100″ alignment=”center” css=”.vc_custom_1716865495513{margin-top: 0px !important;}”][vc_column_text]<\/p>\n

3. VOLUME<\/strong><\/b><\/p>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/4″][vc_single_image image=”24869″ img_size=”100×100″ alignment=”center” css=”.vc_custom_1716865512934{margin-top: 0px !important;}”][vc_column_text]<\/p>\n

4. DELIVERY<\/strong><\/b><\/p>\n

[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner css=”.vc_custom_1549056988346{padding-top: 32px !important;}”][vc_column_inner][vc_column_text]To achieve optimum responsiveness and meet the classification of JIT, just-in-time services must have the following characteristics:<\/b>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner width=”1\/2″][vc_column_text]\"\"<\/p>\n

Zero inventory<\/strong><\/b><\/p>\n

 <\/p>\n

\"\"<\/p>\n

Defect-free production<\/strong><\/b><\/p>\n

 <\/p>\n

\"\"<\/p>\n

Batch size one<\/strong><\/b>[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_column_text]\"\"<\/p>\n

Perfect quality<\/strong><\/b><\/p>\n

 <\/p>\n

\"\"<\/p>\n

Continuous flow of production (high simplicity)<\/strong><\/b><\/p>\n

 <\/p>\n

\"\"<\/p>\n

Producing only as needed<\/strong><\/b>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row type=”container” css=”.vc_custom_1716865580180{padding-top: 30px !important;padding-bottom: 15px !important;background-image: url(https:\/\/www.hollingsworthllc.com\/wp-content\/uploads\/2024\/05\/JIT-02.png?id=24865) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: contain !important;}”][vc_column][vc_column_text]<\/p>\n

\n

Techniques for Successful<\/span><\/h2>\n

Just-In-Time Services<\/span><\/p>\n<\/div>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”container” css=”.vc_custom_1549057601676{margin-bottom: 0px !important;}”][vc_column css=”.vc_custom_1549057606993{margin-bottom: 0px !important;}”][vc_column_text]
\nSuccessful just-in-time logistics are centered on peak efficiency, accuracy and speed. These objectives are achieved through a series of techniques that help drive success and minimize costs:<\/p>\n