Just in time distributionJust in time technique is dependent on continuous flow of value and elimination waste. JIT manufacturing makes sure it produces the required goods as and when they are required. JIT purchasing makes sure RM is in house in correct quantities when it is required. It is useless to produce just in time, if the customer is not going to get the products just in time. For an example if we target to produce 12 products every hour and if we are delivering the customers in batches of 240 we are adding two days of lead time. So it is important to sort out the inbound and out bound logistics of the organization to cater the requirement of the customer. Logistics processes must be geared to handle frequent small lot deliveries. A balance must be found in economy of scale to the customer satisfaction. Third party involvement can be handy in this scenario. Outsourcing of logistics handling is a possibility to focus more in your core competencies. In fact without just in time logistic processes it is not possible to achieve many of JIT advantages including lead time and reduced stocks. |
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