With the planning method Just in time (JIT), companies can minimize loss and make production and delivery more efficient. Learn more about what working according to Just in time means, what the advantages are for your company, and how we at PostNord can assist you when working according to JIT.
What does Just in time mean?
Just in time is about minimizing unnecessary loss, reducing warehouse costs and making production and delivery more cost and time efficient. The method is a principle in LEAN production.
Companies that work based on the JIT philosophy try to produce and deliver products exactly when they’re needed and in the quantity required. No more, no less.
Also read: Demand management
How businesses work according to JIT
Just in time is a great principle to work according to, especially if you want to increase efficiency and reduce costs. By primarily producing, but also delivering, products only when they’re needed, you don’t need a large warehouse balance and can cut the risk of imbalanced supply and demand.
However, for the method to work, you do need certain conditions. It’s particularly important that production facilities and machines are accessible, and ready to be used when the need occurs. Minimal discarding of products is also necessary, as is the ability to work with short lead times and set-up times.
The advantages of Just in time
The JIT principle is associated with advantages for the businesses who apply it. Here are three important advantages:
- Reduced stock for reduced capital tie-up
- Increased efficiency
- Lower costs
Are there any disadvantages?
Despite clear advantages, there are also a few disadvantages to consider with JIT, like any other work principle.
Possible drawbacks of the method can be:
- Often more demanding in terms of logistics
- Requires increased access to machines
- Increased sensitivity to quick changes in price and quality
How PostNord can help companies that work with JIT
We at PostNord know all about truly great logistics. After all, it’s not for nothing that we’re the leading supplier of first-class transport solutions in the Nordics.
With our capacity and expertise, we can help you if you work according to JIT, to ensure that your products are delivered quickly and safely to where you want them. We provide cost efficient and sustainable transport solutions to allow your company to deliver products just in time.
Want to learn more about what we can do for you when you work with Just in time? Get in touch with our customer support for help.