JIT is Playground for Big Companies

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Cengiz Pak
Strategy Consultant, Turkey

JIT is Playground for Big Companies

I think that JIT or zero inventory or any system aiming similar targets needs power to execute. There are three cushions against delivery time variability.
1. Stock
2. Extra capacity
3. Unhappy customers
Big companies may push the stock out, but to where!
Most of the time to the poor supplier. Now it is the supplier turn, if he or she can find another poor supplier JIT will follow.

  Eric Schmitz
Consultant, Belgium

JIT for Third and X-th Supplier?

Besides the three cushions against delivery time variability (stock, capacity, unhappy customers) you should also mention analysis of customer demand.
A better understanding of the needs of the endcustomer can help you manage capacity, stock and customer satisfaction.
Of course this means that you have to understand the total value stream. Remember: if you do not want to invest in understanding the total value stream (including the different suppliers within this value stream which are not the endcustomer), you have to accept that the next one in the valuestream is your endcustomer.

  Cengiz Pak
Strategy Consultant, Turkey

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