Just in Time (JIT)
Just in time (JIT) is a strategic production and delivery system. With JIT delivery (production-synchronous procurement), the transport is adjusted to precisely match the production process and the goods are not delivered until they are required. The goods are delivered directly to the production site by truck and used immediately. These deliveries often take place daily, depending on the requirements. In accordance with the conveyor principle, a constant flow of goods is ensured.
That way, the processing time in production, stocks and warehousing costs can be reduced. Today, the JIT system is mainly used in the car and aviation industry and supports companies in lowering their production costs
Advantages of JIT delivery
- Reduction of warehousing costs (store places, staff, organisation)
- Shorter processing time
- No loss of time due to internal stock placement, transfer and removal
- No risk of the goods becoming obsolete
Disadvantages of JIT delivery
- Increased communication effort for the receiver and supplier
- Risk of delay due to external factors (weather, traffic, …)
- Threat of production standstill in case of problems
- Greater planning effort
- Risks in the event of supply bottlenecks because no own stock is available
- No/short time safety buffers
Requirements for the JIT method
- Good infrastructure (supplier located as close as possible to the receiver)
- Flow of information and communication via electronic data exchange
- Flexibility of the supplier
- Secured product quality
- Continual demand for parts
The just-in-sequence concept is an extension of the just-in-time concept. The greatest difference is that, with just-in-sequence delivery, the parts are also delivered in the correct sequence, so that the goods can be processed further right away. Thus, the supplier also needs to release the products in the correct sequence.
By using the transport management system CarLo, companies can manage the complex and time-critical just-in-time planning. All transport activities are integrated and handled completely in the TMS. Thanks to the combination with the telematics system CarLo inTOUCH, it is possible to track trucks in real time and obtain feedback from the individual drivers at any time.