Now Might Be the Time to Consider Just in Time Delivery


Now Might Be the Time to Consider Just in Time Delivery

Do you find yourself with little space for inventory? Is a large chunk of your money tied up in stocking materials that aren’t needed yet? The just in time (JIT) supply chain model might be the best solution for your space and budget.

How does a JIT program work?

JIT is utilized as a means to protect profit and warehouse space in all types of industries, but especially in manufacturing and food production. This strategy can be used for the inbound delivery of raw materials, the outbound shipping of finished products, or both. The ultimate goal is to save money on inventory and storage costs by cutting (or completely eliminating) the amount that’s sitting on shelves or in the warehouse.

This model allows for goods or materials to only be delivered when they’re needed immediately, or “just in time”. While this makes for a constant drop-off and pick-up of products and materials, it lessens the amount of money and space invested in raw materials before they are needed in the manufacturing process, which frees up funds that might be needed elsewhere.

Why would a company choose JIT?

JIT became popular in the 1950’s and 1960’s, most notably in the car manufacturing industry. This allowed for vehicles to be made and put together piece by piece, without taking up huge amounts of space and money on parts that weren’t ready to be installed yet.

Toyota still works primarily off of this business and logistics model, but JIT can work especially well for smaller companies too. Those with limited space and funds between each stage of manufacturing, as well as those with large gaps of time between production and delivery, may want to consider switching to the JIT model.

If your business requires high value products to be stored, like metal, JIT might be a good fit. Since large amounts of inventory aren’t kept on hand, there is less time between manufacturing and shipping for products to be lost, damaged, or stolen.

Businesses with perishable goods should also look into converting to JIT. It’s important to keep expiration dates in mind when ordering products with a shelf life, and having them delivered only when and in the quantity needed, reduces waste and protects your bottom line.

The great thing about JIT is that it can be adjusted for times when business is either booming or slowing. Companies that see slow seasons could especially benefit, as the logistics ”spigot” can be turned down (or off completely) and you won’t be left with a wasted surplus. Essentially, if parts or stock aren’t needed, they don’t have to be ordered or delivered.

How can Trinity help me switch to JIT?

As a full-service 3rd party logistics provider (3PL), Trinity can assist with all stages of the transition into the JIT program. We can arrange the JIT shipments of both inbound materials and outbound product. Our network of over 30,000 certified carriers means that timely pickup and delivery are easy to arrange. If you need to switch to a smaller warehouse space to accommodate your new JIT plan, we also offer warehousing solutions.

Trinity offers extremely flexible and customizable supply chain services, so that if production is slow, we can slow down your shipments going in and out, or if you hit peak sales, we can get carriers moving to match your pace. Rest assured that all of our logistics and warehousing solutions are adjustable and streamlined to allow your time and energy to be most focused on your own business.

To request a consultation or more information about switching to a JIT program, click here!