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Just-in-time-delivery
Just-in-time-delivery is a logistics strategy that aims to deliver materials and goods exactly when they are needed, and not before. The main goal of this method is to reduce inventory levels and the associated costs to a minimum. This is achieved through precise planning and coordination of supply chains so that materials and products arrive at the production or point of sale at exactly the right time and in the right quantity.
Advantages of just-in-time-delivery
- Cost savings: By reducing inventory levels, companies can minimize storage costs such as rent, insurance, and maintenance.
- Increased efficiency: The JIT method promotes more efficient production planning and execution by reducing the need to manage large quantities of raw materials and intermediate products.
- Flexibility: Companies can respond more flexibly to changes in demand because they are not tied to large inventories.
- Quality improvement: Close cooperation with suppliers allows for better monitoring and assurance of the quality of delivered materials and products.
Challenges and risks
- Supplier dependency: There is a high degree of dependency on reliable suppliers and a stable supply chain. Disruptions can have a significant impact on production processes.
- Transportation problems: Transportation delays can lead to production downtime, as there are no buffer stocks available.
- Planning effort: Implementing JIT requires precise and careful planning as well as continuous coordination and communication between the parties involved.
- Risks from unforeseen events: Natural disasters, political unrest, or other unpredictable events can disrupt the supply chain and lead to significant problems.
Practical application
Just-in-time-deliveries are widely used in various industries, particularly in the automotive industry, electronics manufacturing, and retail. For example, automotive manufacturers have successfully integrated JIT into their production processes, thereby increasing their efficiency and competitiveness.
