If you are going to launch a new business or want to improve the already existing model of production, it’s a good idea to experience various marketing and inventory management strategies. Just-in-time delivery or the so-called Toyota production system is becoming more and more popular among retailers.
This inventory strategy has a long history and both fans and opponents. One of the most significant advantages of JIT is the possibility to cut costs and make the manufacturing process more profitable. If you have no idea what this notion means and whether it’s able to meet the needs of your business or not, the following information may be useful and helpful for you.
Just-in-time delivery strategy implies ordering and getting all of the necessary supplies or customer sales only as there is such a need, but not before.
Thus, the list of major pluses of JIT encompasses:
- Production becomes more cost-efficient.
There is no need to guess potential demand. You are going to manufacture as many items as clients order.
- It’s the best way to eliminate the amount of waste.
The amount of waste is minimized. The same is true about waste from overproduction. It’s also possible to minimize processing litter and waste from product defects.
- You do not need to rent a warehouse.
While all the supplies you receive are immediately used in manufacturing and the ready products are sent, you do not have stuff that should be stored. In such a way, you may save lots of money.
At the same time, the crucial disadvantages of JIT can’t be ignored. Thus, if something goes wrong and you do not receive the needed items, the whole manufacturing process freezes. The next drawback of the system is the disability to deal with the unexpected rise in demand. Thus, if the number of orders increases significantly, the firm may fail to fulfill all of them.
One of the most crucial elements of successful implementation of the JIT strategy is the right choice of freight forwarder. Otherwise, possible delays may lead to the failures in stable functioning of the supply chain of your company. You should keep in mind that nowadays logistics is quite a complex and intricate process. To get the needed items, sometimes it’s necessary to experience several modes of transportation. When it comes to interstate orders, freight trucking is the most winning solution.
Your ideal freight broker is able to make up the most optimal route. You are to get an effective tracking application. With its help, you always know where your order is and when it will be delivered. Moreover, you can count on constant support and maintenance. It goes without saying that the prices for such serves should be reasonable and affordable for any type of business.
To sum it up, it should be noticed that the Just-In-Time delivery model has both pluses and minuses. If you are able to find reliable and top-rated suppliers and freight brokers you can always rely on, you may benefit from it. Yet, if the risks of constant delays and damages are high, it’s better to look for other alternatives.