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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:- 18 Aug 2022 at 16:26:35

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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Warehouse Automation: The Key to Efficient Inventory Management

Managing a warehouse can certainly be a daunting task, and the traditional manual methods are usually slow and prone to errors. That's where warehouse automation comes in. Automation is an incredibly powerful tool that can help you streamline your processes and improve efficiency. Through automation, you can gain more control over your inventory, reduce costs, and improve customer service.

Warehouse automation technology has become an increasingly popular trend in warehouse in Chennai to boost workflow efficiency and productivity. Automated solutions are designed to streamline tasks, reduce labor costs, and improve accuracy and inventory control. With the implementation of automated systems, warehouses can effectively manage their inventory, reduce costs, and maximize productivity. From automated picking and packing to RFID technology, automation is the key to efficient inventory management.

In this blog, we will explore how automation can help with efficient inventory management in warehouses, as well as how to take advantage of automated solutions to reach your goals.

What Is Warehouse Automation?

Warehouse automation is the use of automated technology to manage the storage, retrieval, and movement of goods within the warehouse. This means that robots and machines are used to process orders and keep track of items in the warehouse, which helps make your storage processes more efficient. With state-of-the-art automated technology systems, you can reduce labor costs, improve accuracy, and speed up inventory management.

The advantages of using automated technology in warehouses are clear. Automation eliminates manual data entry while ensuring consistent accuracy something that manual paperwork can’t always guarantee. Additionally, it ensures efficient storage procedures by helping you keep track of stock levels and product information throughout the supply chain. Automation also helps with order picking and packing, further reducing labor costs and increasing efficiency.

Ultimately, it gives your inventory management processes a much-needed boost increasing accuracy, reducing labor costs, speeding up processes, and improving customer satisfaction all at once.

Benefits of Warehouse Automation for Inventory Management

You may not realize it, but warehouse automation can be the key to efficient inventory management but first, let’s define what it means. Put simply, warehouse automation is the use of automated software and hardware systems to manage the workflow in a warehouse. This technology can help you cover everything from tracking stock levels to managing orders.

The benefits of warehouse automation for inventory management include the following:

  • Improved accuracy: Automated technology eliminates manual errors in stock tracking. By automatically inputting purchase orders and sales information into the system, you can keep track of all your stock with ease, eliminating the chances of making mistakes.
  • Streamlined operations: Automation software makes it easier to track when items are shipped, received or put in storage all without manual intervention. This allows you to respond quickly and efficiently to customer orders and ensure that goods arrive on time.
  • Reduced costs: State-of-the-art technologies help reduce manual labor costs associated with stock taking and shipping processes by eliminating human labor from these tasks. Plus, there's no need for additional paperwork or manual data entry with automated systems handling the job.
Whether you’re running a large-scale fulfillment operation or a small online store, automating your storage facility is an essential step towards streamlining operations, ensuring high levels of accuracy and reducing costs.

Automating the Entire Inventory Management Process

One of the key benefits of warehouse automation is that it can automate the entire inventory management process. Without relying solely on manual operations and processes, you can quickly gain visibility into your warehouse's efficiency and accuracy.

Automating processes like receiving, storage, put-away, picking, packing, and delivery can be detrimental to your warehouse's productivity and profitability. Not only will it help you reduce errors due to manual workflows, but it will also help you optimize your warehouse operations by eliminating low value tasks.

Here are some examples of how automation can simplify the entire inventory management process:

  • Automated receiving: Automated receiving systems can identify when packages arrive on site and flag any discrepancies for immediate resolution. This helps save time and increases accuracy in your inventory data.
  • Automated storage: With automated storage systems, items are quickly stored in their designated locations with optimal space utilization. This helps minimize labor costs associated with manually searching for a product’s location or carrying them from one point to another.
  • Automated picking and packing: Automated picking systems help reduce search time for orders and increase accuracy by eliminating human error from manual selection errors due to misreading of pick lists or wrong product codes being selected. Packing robots can also handle large volumes of orders at a rapid pace which can reduce order fulfillment time significantly.
All these automated processes combined make efficient inventory management a breeze saving time money, and resources in the process!

To Sum Up

To summarize, warehouse automation is an effective and efficient way to manage inventory. It can provide numerous benefits, from improved accuracy to a greater level of control over processes. With automated warehouse systems warehouses can boost their efficiency and accuracy as well as reduce costs. Automation can also help reduce human error and create a seamless process for inventory management.

When implemented correctly warehouse automation can be a powerful tool for warehouse and inventory management. As technology continues to evolve, automated warehouse solutions will become increasingly popular and will become the go to solution for warehouses storage facilities and inventory management. So if you're looking for an efficient way to manage your inventory, then look no further than automation technology.It’sthe key to streamlined efficient inventory management.




Warehousing costs
14 Mar 2023

A Complete Guide To Warehouse Costs

Warehousing costs are an integral part of the supply chain process but are often overlooked. It is essential to have a clear understanding of all the costs associated with warehousing in order to maximize efficiency and profitability.

In this blog post, we will cover everything you need to know about warehousing costs, including the different types of costs and ways to reduce warehouse service fees. We will also discuss the benefits of outsourcing warehousing to a third-party provider. Read on to learn more!

What are Warehousing Costs?

Warehousing costs refer to the fees associated with operating a warehouse, such as rent, utilities, labor, insurance, maintenance, and taxes. It also includes the cost of goods stored in the warehouse, including the cost of inventory control, order fulfillment, and other related services. These are necessary expenses for businesses that need to store large amounts of inventory for sale or distribution.

The cost of warehouse service depends on a variety of factors, like the size and location of the warehouse, the type of services offered, the number of shipments the warehouse handles, the type of goods stored, and the duration for which the facility will be used.

Let's take an example to grasp this better. For instance, if you want a warehouse in Pune, the warehousing fees will depend on the labor cost, the size of the storage facility, and the type of inventory management technology being used. Generally, the cost of a warehouse in Pune ranges from Rs. 15 to Rs. 25 per square foot per month.

Factors that Influence Warehousing Costs

  • Location

The location of warehouses will have a significant impact on the pricing of warehousing services. Warehouses located closer to customers and suppliers can reduce transportation expenses, while warehouses located in more populated areas can benefit from economies of scale.

  • Size

The size of the storage facility also affects the pricing. Larger warehouses require more staff and equipment, making them more expensive to operate.

  • Storage and Handling

The type of storage and handling facility further affects the overall pricing. Automated and climate-controlled warehouses can be more expensive, but they may be necessary to protect sensitive goods.

  • Labor Costs

Labor costings are a major factor in warehousing expenses. Depending on the size and complexity of the facility, staffing needs can vary.

  • Technology

Technology also influences the pricing of the warehouse service. Automated systems may streamline processes and reduce pricing, while sophisticated tracking systems help reduce errors and improve efficiency.

  • Insurance

Warehouses must be insured to protect goods from damage or theft. Insurance fees can vary depending on the types of goods stored and the value of those goods.

  • Security

The level of security in the storage facility will also influence the cost. Security measures such as CCTV and alarms may be necessary to protect valuable stock, and this will add to the overall price.

Categories of Warehousing Costs

  • Construction and Upkeep Costs
This includes the warehouse construction cost, including both material and labor costs. Additionally, upkeep expenses such as regular maintenance, repairs, and improvements are also included.

  • Equipment Costings

These include the purchase and maintenance of warehouse equipment such as forklifts, pallet jacks, conveyor belts, and other equipment necessary for the efficient operation of the warehouse.

  • Storage and Inventory Costs

This specifically refers to the storage cost of inventory, including both the cost of the space and the cost of the inventory itself.

  • Labor Wages:

Labor costs include the wages of warehouse personnel, such as pickers, packers, and other staff members.

  • Technology Costs

This encompasses any technology needed to run the warehouse effectively, such as warehouse management systems.

  • Shipping and Transportation Costs
This category entails the cost of shipping both inbound and outbound goods, as well as the cost of transportation and fuel.

Top-Notch Trends in Warehousing Cost Reduction

One of the top trends in warehouse cost reduction is the implementation of automation practices. Automation can help reduce costs by streamlining warehouse operations and eliminating manual labor. Additionally, automation can also help reduce labor costs by automating warehouse tasks such as inventory control, order fulfillment, and receiving. Furthermore, the implementation of warehouse management systems can help reduce errors and increase efficiency. Finally, investments in industry-edge technologies can help improve accuracy and reduce operational expenses.

All of these above-mentioned strategies enable businesses to reduce costs while increasing the productivity of their warehousing operations.

How to Reduce the Costs of Warehouse Service

  • Analyze Warehousing Operations

The foremost step in reducing expenses is to analyze your current warehousing operations. Identify areas where costs should be reduced, such as through improved inventory management, better use of space, and more efficient processes.

  • Embrace Automation

Automating warehouse services can greatly reduce operational expenses. Automating processes can reduce the need for manual labor, improve accuracy, and speed up operations.

  • Space Optimization

Optimizing storage space can reduce costs. Implementing a smarter storage system that utilizes vertical space can help make the most of the available space and reduce costs.

  • Adopt Lean Processes

Lean processes can help reduce pricing. These processes involve streamlining operations and eliminating waste.

  • Invest in Technology

Investing in technology can help save time, money, and resources by improving processes, reducing errors, and improving inventory management.

  • Negotiate Better Rates

Negotiating better rates with suppliers leads to reduced warehouse costs. This can include negotiating better shipping rates, discounts on bulk orders, and more.

  • Outsource Whenever and Wherever Possible

Outsourcing certain operations to a third-party logistics provider is the best possible way to save resources and increase efficiency. This can include outsourcing parts of the warehousing operations, such as storage, distribution, and transportation.

Benefits of Outsourcing Warehouse Service to a Third-Party Logistics Provider

Outsourcing warehousing to a third-party provider can bring about a number of benefits for businesses. By outsourcing warehouse services, businesses can save time and money that would otherwise be spent on expenses such as staffing, equipment, and maintenance. Additionally, third-party providers are often able to provide businesses with more efficient storage and distribution systems.

Furthermore, businesses are able to benefit from access to an experienced team that can provide necessary support in areas such as inventory management, customer service, and order fulfillment. All in all, businesses can focus their resources on core processes instead of managing a warehouse, allowing them to focus on activities that will help them meet their goals and objectives.

Concluding Remarks

To offer concluding remarks, warehousing costs are a necessary part of running a business and must be carefully managed in order to stay competitive. The cost of warehousing includes both the cost of the physical facility and the cost of the labor and services needed to keep it running. By understanding the different components of warehousing fees, businesses can better manage their warehousing expenses and increase their profits. With careful planning, businesses can be sure to get the most out of their operations, enabling their business to succeed and thrive.

G20 logistics
27 Feb 2023

Will India's Mint Ever Rule The World? Coveted Access To Logistics At G20 Meetings

The G20 meetings are an annual forum for global leaders to come together and discuss major economic, social and political issues. Access to these meetings is highly sought after and usually limited to representatives of member countries. However, logistics companies may be able to gain access to some of the events by working with the organizers. This can be done by providing services such as transportation and logistics support, or by becoming a sponsor of the event. Logistics companies can also work with governments and international organizations to gain access to G20 meetings. This can include providing logistical support for meetings and attending related meetings such as trade summits. In addition, companies may be able to take part in some of the meetings by working with local or regional governments.

The G20 trade track which began at the Osaka summit in 2019, is a forum for discussion on global trade issues among member countries. The forum provides a platform for countries to share their views on a range of trade-related issues and to identify measures to facilitate global trade.

No, India's Mint will not ever rule the world. It has no authority to do so. India's Mint is responsible for managing the country's currency and creating coins and paper money. It does not have the authority to govern other nations. However, India is a member of the G20 and it has access to logistics at G20 meetings. This allows India to influence decisions made at the G20 and to promote its own interests.

At the Osaka summit, India proposed the setting up of a task force on global supply chains. The task force will work towards improving the efficiency of global supply chains and making them more resilient.

The objective of the task force is to identify and address the challenges faced by global supply chains. It will also look at ways to harness the benefits of technology to make supply chains more efficient.

The task force will be chaired by India and will comprise representatives from all G20 countries. It is expected to submit its report at the next G20 summit.
India's Mint has been making a strong bid for global dominance lately.

As part of this effort,

India has been pushing for more access to international markets.

For instance, India is seeking to secure its integrity in the global markets by gaining access to logistics at G20 Meetings. The economic opportunities that such access would bring are quite significant. For example, India could potentially benefit from increased global trade.
India's Mint is highly coveted for its access to logistics at G20 meetings.
This access would provide India with greater access to global markets, as well as an opportunity to bring Indian products to the world. The access to logistics would also enable India to implement its own supply chain and ensure that Indian products are distributed worldwide. Additionally, the access to the logistics would allow India to secure the stability of its own currency.

Some believe that India's Mint will eventually rule the world.

They point to a number of factors which support this claim. Firstly, India's geographical position at the heart of South Asia gives it a strategic advantage. Secondly, the country is home to a large and growing population, which offers a potential consumer base of over 1.3 billion people. Thirdly, the nation's economy is expected to grow over the coming years and become the world's third-largest by 2050. Finally, India is making great strides in information technologies and other industries, which is helping to propel the Indian economy forward.

However, others are not so sure.

It is argued that for India to make its mark as a major global player, its economy must become stronger. Additionally, global markets can be unpredictable, and India's Mint may not be able to handle the volatility of international markets. Moreover, the access to logistics at G20 meetings is not a panacea, and India must continue to seek ways to strengthen its domestic economy.

What do you think?

Will India's Mint eventually rule the world? India is certainly setting itself up in a strong position. But to achieve its full potential, the nation must continue to focus on improving its economy and ensuring that it develops strong ties with international partners. Ultimately, only time will tell if India achieves its goal of global dominance.

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Our Latest Blogs

Warehouse Automation
30 Mar 2023
we will explore how automation can help with efficient inventory management in warehouses, as well as how to take advantage of automated
Warehousing costs
14 Mar 2023
we will cover everything you need to know about warehousing costs, including the different types of costs and ways to reduce warehouse service fees
G20 logistics
27 Feb 2023
The task force will be chaired by India and will comprise representatives from all G20 countries

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