The Many Benefits of Just in Time Inventory
Today’s manufacturing is touted for its innovation, efficiency, and adherence to quality. It is this emphasis on these values that has helped American manufacturing not only recover, but prove to be a competitive global force to be reckoned with.
One of the most effective business philosophies most successful manufacturers have relied on is Just-in-Time (JIT) inventory. When employed by manufacturers and relied upon by procurement professionals, JIT inventory means reduced costs, increased customer service, and unparalleled quality. So what exactly is Just in Time? At its most basic, JIT inventory is exactly as the name implies; goods are made available to clients just as they need them. The supplier keeps the exact right amount of products on hand—without excess—and keeps them readily available. This management system ensures enoughis kept in stock, but never too much, and demand is always met. Some of the many benefits of a JIT strategy include:
Meeting Procurement Professionals’ Needs: Through a highly organized and well honed system, customers are able to receive what they need when they need it. Due to the level of inventory knowledge and understanding, the company is able to always have ready what their client requires. Companies who are experienced in the strategy are able to add to some product categories while diminishing others as necessary.
Reduced Costs: JIT inventory means reduced waste. This keeps inventory costs down and storage space open, creating a well-balanced, efficient management system through which investments are always smart. The company saves significant money in the process, which is directly passed down to the customer.
Continuous Improvement: When a business knows the ins and outs of their inventory and their customers’ needs, they are able to meet demands, quickly solve problems, and make continuous improvement a natural occurrence. This, too, translates to higher quality and more cost savings.
Increased Return on Investment (ROI): Because only the essential products are stocked, out of date products and waste are eliminated, and stock holding costs are at a minimum. This all makes for greater ROI—another factor that translates to customer savings.
What does it take to truly be successful in business these days, consistently delivering high quality at lower costs to clients? It takes lean, effective, reliable strategies based on efficiency, cost-effectiveness, and proven results. When procurement professionals work with a company that’s truly experienced in the JIT method, they’re getting all of this—and the assurance that they’re working with a company who can meet their demands without exception.
Contact us to learn more about how Keats Manufacturing can support your Just in Time strategy.
