What is Just in Time Inventory?
January 5, 2014
If you’re looking at reducing your inventory or shipping service costs in Toronto, Milton, Burlington, Oakville or the GTA, you might have considered Just in Time Inventory, or JIT.
JIT is an inventory management strategy. It monitors your inventory to minimize the costs associated with inventory control and maintenance. It relies heavily on the efficient monitoring of the usage of your materials and the ordering of replacement goods.
The goal is basically to keep exactly what consumers need and nothing more.
“Just-in-time (JIT) systems can eliminate waste for over-consuming manufacturers left with production overruns and retailers with overstocked backrooms,” wrote John T. Williams, of Demand Media
“However, JIT requires high initial investment and long-term commitment from a company determined to implement it, and it comes with some risks and few guarantees of success.”
He also added that management needs to rethink their entire workflow, from initial intake of raw materials to final output of finished product. However, there are benefits to mastering JIT.
“A retail store using JIT can remodel the warehouse space into more retail sales floor space without expanding the physical store. A manufacturer gets more space to produce goods.”
If you have any questions about how to ship your inventory, or any other questions about shipping services in Toronto, Milton, Burlington, Oakville or the GTA, please contact us any time.