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Five Major Benefits Of Just-in-time Jit Process

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Five Major Benefits Of Just-in-time Jit Process

Five Major Benefits Of Just-in-time Jit Process

Post Date/Time:- 02 Jun 2022 at 17:13:59

Just-In-Time inventory and manufacturing processes have been a trendy topic in the field of supply chain, and many businesses have embraced this methodology. As a result of increased competition and pressure to increase profitability, many organizations are using this strategy to improve their bottom line.

Just-in-time, or JIT, is a strategy of inventory management in which labour, materials, and materials (to be utilized in manufacturing) are re-filled or arranged to arrive exactly when they are needed in the production process. When properly implemented, the JIT strategy has the potential to greatly increase an organization's competitiveness in the market by reducing waste and increasing production efficiency and quality standards.

This guide will cover the Just-In-Time (JIT) Definition, along with the advantages and disadvantages of just-in-time process. Let's get started!

Just-In-Time Meaning and Example:

JIT is a method of inventory management that necessitates close collaboration and communication with suppliers to ensure that raw materials arrive at the time production is set to begin, but no earlier. The idea is to have a minimum amount of stock to meet demand. If you have a credible, efficient supply chain, and accurate demand planning then JIT will have more benefits than downsides. However, if you don't have precise and regularly updated sales predictions, then this methodology can be risky. Several industry giants and successful companies across the country, especially in Mumbai, a sprawling city, are embracing Just-in-Time (JIT) inventory practices that help to streamline supply chain operations and optimize inventory levels, so your business only has exactly what is required on hand.

In addition to this, JIT scheduling is used to facilitate and manage last-minute order changes and to avoid inventory damage or spoilage by preventing operations from starting too soon. When the protocols are followed, production facilities can synchronize their raw material orders with their production plans, reducing the requirement for these items to be kept for long periods of time.

Talking about the Advantages and Disadvantages of just-in-time, there are a myriad of benefits of this system (which will be outlined later in this blog). However, this process has some cons, or potential risks too, like risks of supply chain disruptions, fluctuating prices, forecasting flaws, among others. The advantages clearly outweigh the disadvantages.

An Example of JIT: A vehicle manufacturer, for example, uses a JIT system to function with bare minimum inventory levels due to a high dependency on the supply chain to deliver the parts needed to make cars. The parts needed in the production of automobiles do not arrive before or after they are necessary; rather, they are required just when they are required. Industry leaders across the country seek to use this approach for efficient supply chain management. Warehousing and logistics firms in Pune, for instance, are employing strategies that support efficient just-in-time inventory solutions for your organization.

Now that we are acquainted with just-in-time meaning and example, let's move on to the major benefits of this approach!

Five Major Benefits of the Just-in-Time Process:

Reduces Wastage

One of the major benefits of the JIT system is that it reduces waste. This methodology reduces waste and increases efficiency by receiving commodities just when they are needed for manufacturing rather than in advance. Excess inventories and overstocking situations are eliminated using this model. Lower stock levels reduce the danger of products going unsold and unused in the warehouse. When production quantities are low, you can also reduce losses due to defective products by quickly detecting and fixing defective stock items.

Reduces Operational Costs

Receiving supplies on an as-needed basis saves money and reduces operational costs. The JIT system reduces all expenses incurred by unsold items, such as depreciation, lost opportunity costs, and warehousing charges. Your organization can buy raw materials only when they are needed, allowing it to put its cash to better use.

Less Investment

When inventory levels are reduced, so is the amount invested in it. This improves the organization's profitability by increasing the return on investment by reducing working capital investment to a higher level.

Increased Efficiency and Productivity

Time is equivalent to money in almost all industries (particularly production and distribution). When you know that supplies will arrive at the exact time you need them for manufacturing, lead time can be greatly reduced. Taking the guesswork out of the equation saves time and effort for everyone involved, allowing the entire team to concentrate on what matters most: getting things done by improving productivity and efficiency.

Improves Quality

The JIT process entails fewer things moving around on the sales floor at any given time. This frees up your management team to concentrate on improving processes and creating high-quality products. A versatile workforce can concentrate on producing high-quality, low-defect products.

Final Thoughts:

Like every coin has two sides, similarly, the just-in-time process has both pros and cons, but the pros outweigh the cons! Rather than holding a large amount of inventory at one time, this just-in-time system includes receiving items from suppliers as and when they are needed. There are several benefits to the Just-In-Time process, but the main goal is to increase production efficiency while minimizing waste, lowering production costs and improving profitability. To avoid material shortages, the JIT process requires that producers accurately forecast their demand.

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ecommerce warehousing
01 Jul 2022
As obvious as it may sound, warehousing is one of the most crucial facets of running and managing an ecommerce business. Regardless of the size of your business, you will always need to store your products safely and securely. Apparently, this is what ecommerce warehousing entails.

In this comprehensive guide, we will go over the fundamentals and specifics of warehousing and explain why it is beneficial for your online store.

What is eCommerce Warehousing?

In the simplest terms, it refers to the process of storing, managing, and organizing products that are intended for online sales. It involves operations like storage, distribution, inventory management, and logistics. Today's smart warehouses can perform the functions of both a distribution center and a fulfillment center. While some e-commerce warehouses are owned and run by the retailers, others are under the supervision of 3PLs, or third-party logistics and e-commerce fulfillment partners.

The market for e-commerce has gained enormous popularity in India, and it is only expected to grow in the foreseeable future. For instance, warehouse in Chennai, the online shopping industry is flourishing, driving demand for e-commerce warehouses in the city. The situation is pretty similar in other metropolitan areas.

What are the Elements of a Warehouse?

Warehouses have specialized elements (like technologies, systems, applications, equipment, and infrastructure) that ensure efficient storage as well as distribution of products to potential customers.

Let's examine the distinct elements of a storage facility:

  • Numerous racks and shelves to provide optimal product storage.
  • Security measures to assure that inventory is stored safely.
  • A temperature-controlled or climate-controlled storage system for products like food, beverages, pharmaceuticals, and other products that are temperature-sensitive.
  • An Inventory management system that provides the seller with information about the whereabouts of his products (where they are stored, when they left the facility for shipping.)
  • Equipment, such as forklifts, pallet jacks, conveyor belts, etc.
What is Warehouse Management?

The administration of all activities and procedures involved in operating a warehouse is referred to as warehouse management. It is an essential component of ecommerce fulfillment. If done correctly, it can help your business achieve extraordinary results.

In the most inclusive sense, it includes day-to-day warehousing operations or tasks like:

  • Taking all the necessary precautions for safety and security when storing the inventory.
  • Keeping track of each SKU's bin, shelf, and/or pallet locations to achieve optimal warehousing slotting.
  • Conducting inventory audits.
  • Keeping track of stock levels.
  • Demand Forcasting.
  • Obtaining licences and certifications.
  • Scaling up warehousing operations as the business grows.
  • Track all daily shipments, both inbound and outbound.
  • And a lot more.
While businesses are developing innovative strategies to increase customer satisfaction, the basic tenets are sometimes overlooked. A consumer is likely to switch to a different supplier if he cannot get the products he needs or finds the ordering process to be challenging. Effective warehouse management is then necessary in this situation.

Let's grasp this concept with the help of an instance: If you are thinking of setting up an e-commerce warehouse in Hyderabad, you will need to find a good warehousing solution. There are many options available, but not all of them are equal. You will need to find a warehouse that is large enough to store your products, has a good location, has access to the latest technologies, and is affordable. With the help of a robust and efficient warehouse management system, one can easily manage storage, distribution, logistics, and order fulfillment operations. It also helps in providing visibility and transparency into supply chain operations and real-time information and insights to make more informed decisions.

Using a Third Party Logistics (3PL) Partner for Storage and Logistics Needs:

You can optimize and significantly improve your supply chain by partnering with a third-party logistics service provider for your warehousing requirements. They automate and streamline your logistics processes, such as storage and distribution, inventory management, and order fulfillment.

Now that we have covered the fundamentals, let's look at the advantages of outsourcing eCommerce warehousing and fulfillment operations to a third-party logistics provider.

Key Benefits of eCommerce Warehousing

  • Inventory Management
One of the most significant benefits you get with a 3PL provider is efficient inventory management. This includes monitoring inventory levels, ordering and replenishing products, and demand forecasting. They also provide an integrated inventory management software to speed up and automate the procedure. By observing trends and past patterns, the software enables you to plan for varying levels of demand and sales.

  • Easy and Efficient Integration
Your online store platform can be easily integrated with a WMS to keep records of all of your inbound and outbound inventory and to ensure that everything is operating efficiently and is in sync. Integrating your online store with a WMS allows you to streamline operations.

You can automate daily tasks that include:
  • Notifying customers of order updates and shipments.
  • Ordering of extra supplies to prevent out-of-stock situations.
  • Keeping track of inventory across several sales channels.
  • Focus on Your Core Business
eCommerce warehousing involves so much more than having space to store your products. It involves taking care of packaging, shipping, monitoring stock levels, placing new orders, and a whole lot more. When you outsource it all to a 3PL, you can concentrate on other areas of your business, such as finances, marketing, and customer service.
  • Growth Potential
A 3PL partner can scale operations as your business grows. As your online store grows and the number of orders rises, you will need more resources, personnel, and space to keep your inventory and manage fulfillment. When you work with a 3PL, you are certain of having space to grow both in a figurative and literal sense.

Final Thoughts:

If you are just getting started in ecommerce, warehousing can seem like a daunting task. But with a little planning, and knowledge it can be a breeze. Warehousing could be overlooked in the zeal of running an online business. But keep in mind that efficient inventory and warehouse management can help you achieve excellent results while saving money and time. Keep the pointers discussed above in mind to grow your business.


warehouse in India
13 Jun 2022

Warehousing has taken on a whole new meaning in the supply chain of many businesses. The warehousing industry in India is experiencing a significant transformation in order to keep up with the country's ever-growing manufacturing and logistics sectors. One of the major drivers of increased demand for warehouse in India is the rapid growth of the manufacturing, automotive and spare parts, retail, and FMCG industries. Furthermore, to maintain a strong competitive edge in the market and boost business efficiency, warehouse digitization is becoming a necessity.

Key Market Trends and Prospects for Growth:

The warehouse sector is an important part of India's economy since it keeps the global supply chain moving. With the rise of e-commerce, there is a greater need for supply chains to be more responsive, flexible, and robust. As a result, warehouses in India should embrace intelligent, efficient, and automated technology solutions. For instance, Warehouse in Chennai is on its way to becoming the next major warehousing and logistics hub in India by embracing technological breakthroughs. However, striking the right balance between integrating technology and training warehouse employees on how to use it successfully is extremely important.

According to a recent industry study, the Indian warehouse automation market would expand to USD 512.2 million by 2026, from USD 86.2 million in 2020. Digitization is certainly considered as the best possible option to gain a competitive edge in the dynamic business environment. Within the e-commerce, retail, and third party logistics sectors, there are promising growth prospects in the automated technologies. Artificial intelligence, industrial robots, the internet of things (IoT), and other dynamic solutions available in the market ensure a smooth and safe flow of goods for diverse storage and logistics operations.

Before proceeding further, let's take a moment to understand and define the key terms.

What exactly is Warehouse Automation?

It essentially refers to the process of automating and optimizing the flow of inventory into, through, and out of warehouses to the end-customers with little or no human intervention. It actually refers to the use of software applications and systems to perform tasks that would otherwise be performed manually. An organization can significantly eliminate labor-intensive tasks such as repetitive, menial work, and data entry processes as part of automation initiatives.

In this regard, companies all around the country are adopting technological solutions to automate repetitive warehousing, distribution, and logistics tasks, thereby reducing labour costs and increasing efficiency. For example, warehousing automation companies in Hyderabad employ cutting-edge technology to improve operational efficiency, while also ensuring a synchronized, seamless flow of procedures.

The following are some of the prominent technological trends in the warehousing industry:

  • Goods-to-Person (GTP)
  • Voice Picking Systems
  • Autonomous Mobile Robots
  • The Box Selection Algorithm
  • Pick-to-light (PLT) systems
  • Internet of Things (IoT), Artificial Intelligence and Machine Learning Solutions

The Benefits of Automated Warehouse Systems:

Even though automation entails an initial investment, it has numerous benefits, including improved operations and fewer instances of human error. For businesses to become even more efficient and productive, logistics warehouse digitization has become paramount.

Here are the key benefits of warehouse digitization:

Greater Efficiency

The first and most significant benefit of digital warehousing is improved efficiency. The reliance on manual labour decreases when you optimize your operations. Firms invest in fully automated systems in order to improve operational efficiency and meet ever-growing customer demands. Today's smart warehouses have substantially better turnover, are constantly restocked, replenished, and resupplied, and can provide a plethora of services like storage, distribution, logistics, and order management, among others.

Safety and Security

Ensuring the safety of the workforce and products is reason enough to invest in warehouse automation technologies. Working in warehouses usually involves high-risk activities, including managing heavy pallets and high racks, and working with poisonous items (e.g. chemicals). Today's robots can perform the majority of these tasks, thereby reducing employees' risk and ensuring safety.

Sustainability

Sustainability is a priority for almost every industry, and logistics warehouse are no exception. Executives can achieve their sustainability and environmental goals with the help of WMS solutions and other digital technologies. It helps in controlling resource usage, optimizing space utilization, and incorporating basic green practices like recycling into operations.

Better Scale-Up

The best part about automated systems is that they are simple to scale up and down to meet evolving customer demand. Retailers, for example, do not need to hastily double their staff and manage with seasonal workers during the holiday season. Instead, they can adjust schedules and reprogrammed fleets to handle increased input and output, allowing workers to focus on more consumer-centric tasks like customer care and festive packaging.

Bottom Line

In the foreseeable future, investing in the right automated warehouse systems will prove to be a great move. Intelligent warehouses are the way of the future, and business organizations are gradually embracing the concepts of efficiency, automation, visibility, and transparency in their supply chains.

CONNECTING SUPPLY CHAIN
09 Jun 2022

Over the last couple of decades, businesses and supply chains have become increasingly globalized. Undeniably, supply chain management (SCM) has emerged as a potentially beneficial tool for gaining a competitive edge and boosting organizational performance. Most businesses are struggling to compete with a higher level of market pressure in an increasingly competitive environment. In order to be successful, organizations must explore better methods to ensure that clients are satisfied with great service levels at reasonable prices.

Firms should indeed manage an entire network of interactions, including logistics and several other operational processes, from suppliers to end customers, rather than conduct business with other corporations one at a time. It is often believed that fierce competition is now primarily between value chains, rather than between business organizations. As a result, the spotlight is now turning towards effective SCM practices.

This blog post will outline some of the prevalent issues and challenges in the realm of SCM along with the impact of supply chain management on organizational performance. Read further to learn more!

Labour Constraints Severely Impact Efficiency of SCM:

Supply chain disruptions and restrictions are grabbing headlines and harming the performance of enterprises across a wide range of industries. According to the research findings, an improper SCM strategy can have a disastrous impact on operational efficiency, customer retention, and service. Manpower, a valuable asset in most businesses, is one of the significant contributing aspects to a successful supply chain. The disjointed nature of operational and management systems makes resolving these issues difficult, but a single, highly integrated framework can help managers overcome interruptions and crises more successfully.

What makes the matter so complex?

There are now a number of interconnected variables that have combined to create a perfect chaos that is having a negative influence on supply chain performance, reliability, effectiveness, and efficiency, such as:

  1. Rapid swings in demand (both up and down) throughout various sectors of the economy are induced by production constraints and uncertainties.
  2. Slow down in production activities.
  3. Transportation delays, capacity constraints, and accelerating fees are all factors to consider.
  4. Supply disruptions and a lack of storage facilities in key regions have created inventory placement issues.

The matter of concern is not just that businesses are facing logistical, supply chain, or labour issues; it is that they are facing significant challenges in all these areas at the same time. Accessibility to reliable, qualified personnel is crucial for SCM operations. Coming up with a solution necessitates a quick analysis of combining operational and workforce performance data in order to make better, smarter decisions.

The Importance of Cross-Functional Insights in Improving the Supply Chain Workforce:

As a result of the requirement for greater visibility across large numbers of suppliers, there is a transition from linear supply chains to more interconnected networks that connect multiple stakeholders. By employing advanced technologies, applications, and systems, SCM and HR professionals can easily access data, share information, work collaboratively, and make the right decisions. SCM analytics systems can reveal interconnected operational and manpower constraints, giving decision-makers the insights and information they need to optimize the production-distribution network. Warehouse, and logistics executives, for example, can immediately monitor demand/supply discrepancies and modify workforce requirements to maximize on-time delivery while lowering costs. Human resource professionals and managers can recognize workforce shortages and competency gaps in production and logistics roles across the country and change their recruitment and retention strategies accordingly.

Now that we have outlined some prominent industry challenges and the necessity of an integrated technological platform to manage SCM operations, let's discuss how can supply chain management improve company performance?

SCM's Impact on Organizational Performance:

There is a direct and positive impact of supply chain management on organizational performance. It has become an indispensable component of a business's success. The most recent advancements in the aforementioned industry include information sharing technologies, outsourcing methods, supplier partnerships, and continuous production flow. To increase an organization's fundamental competencies, SCM procedures centre around procurement, customer satisfaction, and the creation of high-quality products.

A well-managed distribution network can considerably reduce a firm's operational costs, resulting in higher profits and increased productivity. Businesses with high-performing supply chain operations generally outperform their competitors in the industry in terms of profitability and success. SCM strategies impact not only flexibility but also the productivity and efficiency of the resources available within a business organization.

Bottom Line:

It all comes down to your supply chain if you want your business to thrive. Long-term success and improved operational performance can result from SCM practices at a higher level. For better visibility, the supply chain of the future must be resilient, flexible, adaptable, efficient, and robust, as well as digitally networked. There must be efforts to connect distribution networks and improve workforce insights via new technologies, thereby fostering operational execution and flexibility.

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