What’s behind “Just In Time”

“Just-in-time” supply chains are being pulled into question as pandemic-related issues such as product shortages cause lean strategies to play a part in the strained availability of manufacturing components and consumer goods. With the Omicron variant making its way across the world, the calls for more “just-in-case” planning have grown. Companies are even considering keeping bigger buffer stock to aid this wildly swinging metronome of supply and demand in this unpredictable environment. 

Some companies are arguing that just-in-time discipline would enable them to cut inventory costs even if it means questioning their integrity. Meaning, they are willing to sacrifice customer service in pursuit of cost savings. But that kind of criticism stems from a misunderstanding of how business strategies work and the benefits it can have. 

The main focus of “just-in-time” is about product quality, not minimizing inventory. A system that is carefully put together and synchronized around a supply chain of components, can’t tolerate a high level of problems like defective parts or quality issues. It highlights deficiencies that need to be fixed. This creates manufacturing processes that reduce inefficiencies which causes sales to rise because the manufacturing quality standard is improved. This, in turn, reduces costs for production because fewer products are returned to correct defects. The more quality supplies you have and quality content you produce, the more infrequently items are returned due to inefficiencies and defects. 

Here at SecurCapital, we believe in being prepared, but also in making sure that we can offer you service coupled with efficiency. With the pandemic throwing things into chaos and disorder, you can count on us to help make sense of it all, and keep you informed. Whether it’s just-in-time, or just-in-case we will navigate this with you every step of the way until we find a solution that works for you.