17 August 2023
Just-in-time and its impact on logistics
Responsible for streamlining the entire production chain, organizing operations according to demand, the just-in-time system contributes to the full operation of all processes in a production chain, including transportation logistics. Thus, each step takes place at the ideal time for business productivity to continue flowing.
This type of structure tends to avoid inventory downtime and waste of raw materials, eliminate costs and increase the efficiency of production management, as it states that nothing should be produced, transported, sold or acquired before its time. Everything’s done based on demand.
The biggest mission of just-in-time (or JIT) is the streamlining of a company’s production directly with the orders placed. Thus, it’s not necessary to manufacture extra products to supply orders that aren’t real yet. With this comes the great benefit of reducing waste of materials, since all raw materials obtained already have a purpose for a purchase that was effectively made.
When producing according to the current demand, planning, integrated communication between areas and suppliers, and the standardization of processes become even more important to ensure agility and customer satisfaction.
How to implement JIT in your business?
For the success of JIT, discipline and fidelity to the action plan are essential. Let’s see some practices to bring just-in-time to life!
Time control
For the workflow to happen automatically and naturally, it’s necessary to have full control of the preparation time for each step, since one depends on the conclusion of the other for the system to advance.
Qualified team
Employees involved in production, administration and logistics must know how to deal with an on-demand operation.
Quality inspection
Although speed is one of the pillars of JIT, it can’t interfere with the quality of execution of the production chain.
Integrated communication
Employees, suppliers and customers must be aligned with the just-in-time methodology and maintain communication so that they know the status of each activity in real time.
Suppliers
A team of suppliers able to quickly respond to demands makes all the difference, especially in the transportation of merchandise so that delivery also occurs within the specified deadline. So, you can count on Asia Shipping, the largest logistics integrator in Latin America and specialist in suggesting the smartest paths in logistics.
Contact us by clicking here and learn all the advantages of having Asia Shipping in your production chain.
