That's why JIT relies on long-term contracts with reliable suppliers, often ordering several parts from the same supplier, even if the parts might be cheaper through another vendor. The problem is, when faced with overlapping deadlines, suppliers have to put their best customers first, so if you're a first-time or occasional customer, you could get caught short. Switching between suppliers to secure the lowest price is fine when you have extra storage space and won't suffer if the order is a day or two late. Four quick tips to help determine if JIT might work for you.JIT can quickly reveal areas that need improvement, improve efficiency and productivity, free up additional workspace and free up more working capital. JIT is an inventory management system based on placing smaller, more frequent, inventory orders. Just-in-Time (JIT) inventory management is designed to help streamline your operation, ensure consistent quality and reduce on-site inventory. Multiply that by the number of supplies you use, and picture how much time your purchasing agents spend trying to cut better deals. When all else is equal, choosing one supplier over another generally comes down to which supplier offers the best price break for the largest order.īut stock eventually runs low and negotiations begin again. When ordering inventory, two of the biggest issues are quality and cost. Can it work for your operation? How do you implement it? OVERVIEW You've heard of JIT to use warehouse space better and to deliver goods to customers more efficiently. Washington State Department of Commerceĭigital Library > Operations and Technology > Inventory control"Just-in-Time Inventory Management".Michigan Economic Development Corporation.
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