Just-in-time: Problematic or Possible?
Just-in-time (JIT) has always been a troublesome part of the management of any supply chain. However, it is feasible if the parties have a better understanding of their respective roles and the value each must bring to the chain.
Managing a supply chain is never an easy feat, it requires dedication and great communication among all parties. It also requires skill in balancing the inventory needs from both a financial and sales perspective. The sales people requires inventory to meet the targets, however, if there is too many item in stock it mops up all the liquidity which could be used to achieve greater competitive advantage, this will be a headache for the finance department.
So how do we go about satisfying both? Improve communication which will result in improved planning geared towards having just what is needed, when it is needed. For this to be achieved, the supplier(s) has a pivotal role to play.