subject: Outsourcing Warehousing And Fulfillment As An Alternative To Just-in-time Manufacturing [print this page] Some companies that want to increase efficiency, reduce costs and just consider the manufacturing system at the appropriate time (JIT) to achieve their goals. Although the system offers advantages in terms of inventory, because they also involve risks that may be detrimental to the process and sales. Can be an alternative to the JIT firms consider is the process of subcontracting and the implementation of storage for qualified third-country logistics service providers.
It also called for the Toyota Production System, JIT is the purchasing and production of materials only as needed to eliminate waste (whether stock, and time, or effort), and make operations more effectively. Because companies will accounting and processing small amounts of raw materials and finished products, it is not necessary to store the house or the implementation of the whole process.
Although it seems like a promising concept, JIT is not without limits. All operations in the JIT system are interrelated. And therefore, can be a flaw in one side of the operations cause the entire system to grind to a halt. For example, if the delivery of raw materials or parts fail because of an accident or disaster, the company will shut down the assembly line until the next shipment. Until a few days can cost companies in the late a large amount of turnover. And because the company canceled the employment of JIT system and its components in general storage and fulfillment, and this means that they will not have stock to fall back on if this happens.
Companies can achieve their goals can still reduce costs and maintain efficiency without compromising their supply chain outsourcing by storage and fulfillment. Mobilize a supplier of third party logistics services, not only eliminates the need for additional space, equipment and labor, but also allows companies to gain access to expertise and technology is available to them in a significant reduction in costs.
And third parties who provide fulfillment and storage services are usually able to provide services only to be on any company. These services cover various aspects of the supply chain, including but not limited to inventory management, assembly, selection, and service packages and ship, packing and packaging machines.
Could be that those who use the latest technology goes beyond just providing storage and fulfillment. Using the latest technology, they can integrate their systems with the Web client to start treatment as soon as it monitors each transaction. Some of the solutions can also enable them to improve internal process or orders in large quantities.
Unlike the system of JIT, outsourcing storage and fulfillment not only helps to streamline operations, with the right service provider, and can also add value to the entire process.
