How to Reduce the Vendor Risks with Just-in-Time ?

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James Zhang
Manager, China

How to Reduce the Vendor Risks with Just-in-Time ?

When we execute JIT, we normally require our vendor to prepare some stock to deliver fast.
If there are design change requests, or other products updates, how to reduce vendor stock risk?

  Eric Schmitz
Consultant, Belgium

Vendor Stock Risk: How to Reduce?

Just-in-Time is a methodology belonging to a lean strategy and should follow the basics of lean thinking.
Respect for all, continuous improvement and stable processes are fundamentals of lean.
As a consequence J.I.T. also has to follow these fundamentals.
So, the risk of the safety stock for design change requests and other products updates at vendor’s side should be the responsibility of the customer. How to cover this risk?
Possible actions are:
* Delivery lead times based on actual process performance
* Possibility for rework of ‘old’ type to ‘new’ type as condition for design changes and updates
* Safety stock of components and raw material and not finished goods
* Close and deep partnership between vendor and customer in order to optimize the material- and data-flow.
Who can give us other solutions?

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