SERVICES
Our Latest Blogs
LCL Consolidation – Global Logistics Solutions for Fashion Apparel Retailer in UK
Case Study: 3PL Logistics Solution for a Leading Power Back-up Manufacturer
Case Study: 3PL Solution for a Leading Apparel & Fashion Retailer
The Impact of Digitization In 3 PL Space In the Business Arena
Customer Focused Supply Chain ~ An Emerging Trend!
Logistics Cost as 13% of GDP in India – Meaning, Interpretation and Basis
Share On Social
WHAT IS JUST-IN-TIME IN LOGISTICS
In logistics, just-in-time means obtaining raw materials, goods, and components right when needed, rather than days or weeks ahead of time. Businesses may dramatically reduce inventory expenses by keeping fewer unnecessary goods on hand and storing considerably less material.
BENEFITS OF JUST IN TIME LOGISTICS
- Inventory Reduction:Reduced inventory throughout the supply chain is the most evident benefit of Just in Time logistics. If the item arrives just before the following process begins, there is potentially no need for inventory. Of course, there are always specific inventory needs in the current world. However, if the company effectively uses the JIT process, it will be drastically reduced.
- Reduced Operating Costs:Reduced inventory storage expenses are one of the side consequences of reduced inventory. Inventory storage and management are expensive. And each minute spent on the list between deliveries adds to the bill. As a result, lowering the number of products in inventory reduces operational expenses and boosts profit margins.
- Faster Delivery:Another advantage of having a few inventories is a shorter inventory wait time. The overall time to delivery lowers if the sub-processes take the same amount of time as before, but the time spent waiting between each step in the process decreases. In addition, JIT operations are always focused on reducing lost time, and it’s right there in the name if you forget! Consequently, Just in Time logistics shortens delivery times and minimizes lead times.
- Better Responsiveness:JIT capabilities enable an organization to respond more quickly. The supply chain can be changed to meet shifting needs. Shorter lead times allow us to fill a large number of orders quickly. As a result, the organization can cater to a wide range of customer requirements. The flow of goods across the supply chain becomes more responsive and flexible.
CHALLENGES IN JUST-IN-TIME
There are several advantages to utilizing Just in Time logistics. Inventory needs are reduced, and delivery times are reduced. However, there are some challenges which are mentioned below:
Minor Disruptions Could Have A Serious Impact
Companies typically keep buffer stock at several locations throughout the supply chain. If a stage in the process is delayed, the buffer helps to compensate for the inventory deficit in subsequent operations. The buffer stock is decreased as much as feasible with Just in Time. As a result, a single little hiccup can swiftly spread across the supply chain. A single hiccup early in the procedure might throw off the entire sequence. As a result, companies must determine the best safety stock level and manage it with a delivery variation.
Accurate Demand Forecasting Is Difficult
Without precise demand forecasting, implementing just-in-time logistics is difficult. Companies must forecast demand for a product and how it will evolve. This data aids managers in inventory and delivery planning to ensure on-time delivery. If the actual order is far lower than anticipated, stocks will rise. If actual demand exceeds forecasted demand, the supply chain will not have adequate inventory to deliver the products on time. As a result, companies must rely on data analytics to estimate demand correctly.
Hidden Fees
Using Just in Time Logistics has several hidden expenses. It is an expensive investment to train people and construct the technical infrastructure to enable Just-in-Time logistics. JIT might result in unanticipated expenditures if there are any supplier shortages or delays. If the supply chain cannot cope with the variations and has frequent disruptions, these unexpected costs can quickly escalate.
IMPLEMENTING JIT LOGISTICS
Under favourable conditions, Just-In-Time is a boon but might be a bane under adverse conditions. Therefore, it’s essential to prepare thoroughly before taking this step. These questions must be asked before moving further with JIT services.
- Will JIT provide a competitive advantage for your company?
- Will there be considerable cost savings?
- Will your personnel be able to cope with the new work process?
BOTTLENECKS AND INEFFICIENCIES SHOULD BE IDENTIFIED
To begin with, the whole process flow chart needs to be deconstructed completely. You may find that your supply chain must be studied thoroughly in-depth once all of its components are mapped out. This will aid in the detection of bottlenecks, delays, and inefficiencies. The research will also assist in determining the best inventory levels in different locations. You may look at your previous statistics to see where you can cut down on lead times and inventory prices. You may also estimate delivery and waiting times across your whole supply chain.
BECOME DATA-SAVVY
Data collection, storage, and analysis are critical components of the Just in Time logistics approach. Continuous monitoring of numerous key performance indicators ensures that you can reach your goals and expectations. When an issue does arise, you’ll be able to recognize it far sooner.
The process needs to be continuously tracked and improved in a constantly changing world. Thus, making data-driven decisions will help keep the supply chain optimized for JIT. Moreover, seamless communication and data sharing between the different stakeholders should be seamless communication and data sharing.Â
MANAGE THE RISK OF DISRUPTIONS
It’s also critical to control your risk. Even if your estimates are correct, you must plan your supply chain to deal with unexpected changes. It may be tempting to cut inventory even more to reach near-zero waiting times, but even a minor issue might derail your entire supply chain in this instance. The “bullwhip effect” is what it’s called. Small movements at one end of the bullwhip result in large motions at the other. Similarly, even a minor delivery delay might affect your logistics operation. As a result, it’s always a good idea to include a safety buffer in your Just in Time calculations.
WHY SHOULD YOU CHOOSE GENEX LOGISTICS
Genex Logistics’ Just-in-Time (JIT) logistics services ensure that your product gets to its destination exactly when needed, reducing inventory and storage expenses. This distribution mechanism is critical for huge, expensive-to-store freight and freight with a limited shelf life. Genex Logistics additionally offers a tracking system to keep you informed about your shipment’s position and expected arrival time for added planning and efficiency. Contact us and getÂ
Our Services Include
- Time Definite Delivery
- Excellent customer service.
- Direct Trucking
- Faster Trucking Services
- Door-to-Door Services