When it comes to businesses selling products online and the emergence of Amazon’s extremely fast delivery times, it is of utmost importance that small business owners cater to that same philosophy. Customers are used to having their products shipped in less than a week, and any business that doesn’t come close to those standards will always fall short to their competitors. Because of today’s competitive shorter product life cycles, customers now demand and expect fast service which is quickly changing businesses globally and putting a ton of pressure on manufacturers and suppliers to respond quickly and also to shorten their product cycle times. One way to ensure quick turnaround is by storing inventory, but a business will have to be aware that inventory costs can increase if inventory is held for too long. A wiser approach is to make your production agile, and able to adapt to changing customer demands. This all can be done by Just in Time Delivery Services (JIT).
What Are Just In Time Delivery Services (JIT)
The Just In Time Delivery Services Concept was created by Taiichi Ohno, a former shop manager and eventually vice president of Toyota Motor Company. Today, it is widely recognized as one of the most efficient manufacturing systems in the world. To put it simply, we can explain JIT as producing the necessary units and to provide the necessary quantities at necessary times. Producing one unit extra is as bad as being one unit short. Completing one day early is as bad as finishing one day late. Therefore, the items are supplied “just-in-time”. Here is how Ohno describes the development of JIT:
By actually trying, various problems become known. As much problems become gradually clear, they taught me the direction of the next move. I think that we can only understand how all of these pieces fit together in hindsight.
The Benefits of Just In Time Delivery Services
Holding your inventory in a safe location can be extremely comforting but it’s also very costly. Once you start to hold excess inventory you begin locking away your cash aimlessly. Also, your items can be lost, damaged or become obsolete over the years because of unnecessary storage. They occupy valuable space that could further be used towards your operation.
One of the greatest benefits of the JIT system is it allows you to carry low inventory. You receive the material as you need it, just in time. There’s no need to write off large inventories.
Another benefit of a JIT system is the reduction of waste. If material goes beyond its expiration date, corrodes or becomes unusable the cost of material rises. By eliminating waste you can control your business expenses.
A third key benefit of Just In Time Delivery Services is high-quality production. Since you’ll only be dealing with suppliers whom you trust, they will understand your needs and make sure quality is of utmost importance. This will eliminate rejected parts through your quality control process and quicker consumption rates.
Now that you know the importance and benefits of Just In Time Delivery Services, we believe it’s a no brainer that you contact us at Florida Warehousing & Storage today to provide JIT services for your business. Contact us now at (321) 259-7983 or go to the contact us page to discuss your project and our pricing. No matter what type of warehousing needs you have, we are here to help with your product distribution.