JIT Inventory System

JIT inventory control is a great way for manufacturing industries to produce more effectively and efficiently while providing a quality ensured finished item. JIT stands for just in time inventory control.

The benefits that accompany JIT inventory pos system are:
• eliminated expenses
• increased efficiency
• increased goal size
• increased productivity
• supplier/customer relationships
JIT inventory management software allows the manufacturer to eliminate certain expenses relating to warehousing and inventory stock. The JIT system allows for “just in time” production. No parts are necessary until the time they are needed in the assembly time line. The traditional way of production was to have more than what you needed in supplies and produce more finished products than want was needed. This opened the door for a lot of unnecessary expenses. JIT will allow you to decrease expenses while producing more of what you need as opposed to what you don’t need in mass production.

There is a direct correlation between customer satisfaction and productivity. Because so much emphasis is placed on customer satisfaction productivity will increase accordingly allowing for an increased goal size to be implemented. This direct correlation is what manufacturers thrive off of. A simple cause and effect chain all based off of customer satisfaction and customer needs.

Supplier/customer relations will be another benefit of JIT inventory control. The amount of trust and faith the will be put into a supplier will be tremendous. You will be relying on your supplier to get you what you need when you need it at the time it is needed. This will ensure that a relationship is built and can only work with positive communication. JIT is so time specific that once a relationship has been built between a supplier and a manufacturer the number of suppliers for that manufacturer will be minimal.

Although there are many benefits to JIT inventory control there are also some negatives that accompany JIT. Because JIT is so specific it does not allow room for changes in a product. Nothing is kept on hand it is only wanted when it is needed therefore there is no inventory available to make the changes with. This can be costly for a manufacturer especially if there is a defect in one of the product lines. This would call for a total reconstruction in order to determine where the fault lies and how to fix it according to JIT.
JIT inventory control systems are a great way to increase productivity and ensure customer satisfaction but it must be set up properly or the effects can be devastating to a company. Everything about JIT is directly related with one another allowing for a tremendous cause and effect scenario.