Just In Time Inventory

Florida Warehousing can help you with your Just In Time Services (JIT). To clarify, JIT is an inventory strategy that your company can use to increase efficiency in production and decrease waste. The objective of JIT is to produce the right product, at the right time, in the right quantities. Unfortunately, it is impossible to achieve perfection. We strive to adopt the most cost-effective strategy for your company.

Just In Time Inventory Management ordering means the company does not keep any security stock, and it works with consistently low levels of inventory. This approach helps companies lower the cost of carrying inventory, improve productivity, and reduce waste. JIT requires manufacturers to be very precise about the demand for their products in forecasts. Just-in-time inventory management is a positive strategy for cost-cutting, although it can lead to stockouts too. JIT’s goal is to increase the return on investment of a business by reducing the non-essential costs.

There are some competing inventory management systems, including short-cycle fabrication (SCM), continuous-flow fabrication (CFM) and demand-flow fabrication (DFM).

The JIT inventory system represents a shift away from the older “just-in-case” strategy, in which producers carried much larger stock and raw goods inventories in case they needed to produce more units due to higher demand.

Just In Time Inventory Management offers advantages, such as allowing manufacturers to keep production runs short and quickly and easily pass on to new products if needed. Companies who use JIT no longer have to hold a vast expanse of warehouse space to store inventory. Additionally, a company no longer has to spend vast sums of money on raw materials for manufacturing, as it just orders exactly what it wants, which frees up cash flow for other uses.

The JIT system is focused on improving production, storage, and shipping. You have just enough of everything so you can cut down on the costs of everything. Some things to consider when running a JIT system:

  • Consistent facility loads: Having a reservation system can keep the facility from being overflooded. Differential pricing depending on the day, time of day or customer frequency can also help.
  • Standardized workflow: In highly repetitive services these work methods can become very efficient by analyzing work procedures and making a level of standard for all employees to follow.
  • Close ties with suppliers: Keeping constant contact with suppliers may help diminish the possibility of running out of supplies which could really hurt a JIT system.
  • Workforce versatility: Having your workforce being able to change tasks in certain situations is very valuable. If you change a task in the workflow you need your workforce to be able to handle it.
  • Automating processes: Automation is huge when considering just in time services. If you know that you can produce X product at a certain speed almost 100% of the time because its a machine doing it there’s much more capability in preplanning your product or service.
  • Machine maintenance: Services that are dependent on machinery should have maintenance done routinely to prevent malfunction. This helps keep the automation process flowing as intended.

Confronting the challenges of global competition, companies are focusing more on the needs of customers to improve product quality and customer service. The manufacturing sector has long been aware of the need to reduce waste as a means to reduce costs and improve product quality. Just in time, the formalized process of waste reduction has achieved a strong foothold in the manufacturing sector.

Just In Time services focus on the process, not the product. Florida Warehousing LLC provides a framework for applying JIT to processes with the goal of investigating how just in time principles can be implemented in your company. Call us today at (321) 259-7983 to receive the Just In Time Inventory Management services that fit your needs. Feel free to reach out to us on Facebook as well! 


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