Combining JIT and Outsourcing

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Eric Schmitz
Consultant, Belgium

Combining JIT and Outsourcing

JIT and outsourcing go hand in hand.
On one side it seems contradictory. JIT stands for producing and delivering to the customer what he wants when he wants. This is an extreme challenging condition. So you would expect that we should not further complicate things by outsourcing activities as well.
But actually, companies using JIT, will most probably start outsourcing as part of their activities. Why?
Implementing JIT (step by step, of course) will soon make clear that some skills and competences are not available in the company, nor do they fit in the mission and vision of the company. That then forms the main reason to outsource.
In order to serve the customer in an optimal way, companies will need to work jointly and closely to achieve an acceptable JIT-level.
For example, a production factory will have little or no experience in logistics and transport. So to give a proper service to the customer it might be better to outsource this sub-activity.
Please share your experiences and opinions in this matter by entering a reaction... Thanks.

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