Buying | Sales | |
$ USD | 34.7797 |
34.8424 |
€ EURO | 36.6602 |
36.7262 |
¥ JPY | 22.8941 |
23.0457 |
£ GBP | 44.2768 |
44.5077 |
Just-in-time (JIT) transport refers to a logistics strategy that aims to improve a business´s efficiency by receiving goods or materials only as they are needed in the production process, rather than carrying large inventories. The key principles of just-in-time transport include:
1. Minimizing inventory: The goal is to have materials and products arrive precisely when they are needed, reducing the need for warehouse storage and excess inventory.
2. Frequent deliveries: Suppliers make smaller, more frequent deliveries to the production facility, often on a daily or even hourly basis.
3. Shortened lead times: The time between placing an order and receiving the goods is kept as short as possible, often through close coordination between the supplier and the customer.
4. Elimination of waste: JIT transport seeks to eliminate any wasteful activities, such as excessive transportation, waiting times, or overproduction.
The benefits of just-in-time transport include:
- Reduced inventory costs: By carrying less inventory, businesses can free up capital that can be invested elsewhere.
- Improved efficiency: With materials arriving just as they are needed, production can be better synchronized and more efficient.
- Enhanced quality: The reduced inventory and shorter lead times can help improve product quality by reducing the risk of damage or obsolescence.
- Increased flexibility: The ability to respond quickly to changes in demand or production requirements.