Just-in-Time delivery (also known as JIT delivery) is an important inventory management process and lean manufacturing technique in supply chain management. It’s also known as the Toyota Production System (TPS).
JIT delivery involves ordering and receiving inventory for production or sales only as needed, reducing warehousing costs because inventory is constantly on the move. This process significantly improves efficiency in manufacturing, while presenting numerous cost-saving opportunities.
This infographic outlines the benefits of JIT delivery, including:
- Prevents waste
- Improves production efficiency
- Reduces inventory carrying costs
- Requires accuracy in demand forecasts
- Allows short production runs
- Minimizes costs for warehousing as well as raw materials
- Frees up cash flow
The infographic for All You Need to Know About JIT Delivery also explains the risks of the process, such as:
- Can cause supply chain disruptions
- Potential losses if orders exceed the delivery promise
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