How Just in Case logistics Works

Just in Case logistics (JIC) is an inventory management methodology that consists of having enough product in stock at all times.

Compared to Just-In-Time logistics, where products are manufactured and stored on demand, Just-In-Case logistics is based on having more inventory than necessary. In this way, the company ensures that products are always available to be able to cope with increased demand or any type of eventuality.

This “just in case” management will imply, among other things, a greater investment in warehousing.

In which sectors and companies is Just in case logistics used?

The Just in case methodology is usually used in sectors with volatile demand, and in particular, in those that manufacture products with a long shelf life. For example, pharmaceuticals, where it is important to have availability of medicines and where stock-outs can have serious consequences.

In recent years, however, due to pandemics, war and the materials crisis that have strained supply chains, companies have turned to this strategy in order to maintain supply in all sectors.

What are the advantages of just-in-case logistics for companies?

From an inventory management point of view, one of the main advantages of just-in-case logistics is that it allows for greater flexibility. That is, by having a larger volume of products than necessary, companies can respond quickly to changes in demand without fear of running out of stock.

On the other hand, although it may seem that companies incur higher costs with this type of stockpiling, the truth is that this method can generate considerable savings in the long term. 

First, by buying in larger volumes, they benefit from better prices. In addition, they have sufficient stock to ensure sales and respond to customers more efficiently than their competitors.

Just in case logistics packaging

More stock, more storage. For this reason, the unitization of cargo is one of the pillars of just-in-case logistics. Through palletizing, we manage to group and arrange the goods in the warehouse in higher loading units. In this way, we make maximum use of space.

In addition, since the products are palletized and sorted, they are kept in perfect condition while they remain in the warehouse for a long time, they can be located more quickly and the loading and unloading task is more agile.

Finally, the EPAL Euro pallet is a key element in this process. Thanks to its standard dimensions of 800 mm x 1,200 mm, the EPAL europallet can be adapted both to the dimensions of transport logistics (trucks and railroad wagons) and to those required in intralogistics (lifting, transfer on conveyor belts, handling of cardboard and wood packaging, etc.).

In short, packaging must meet the requirements of today’s supply chains. At 360 Eco Packaging we can help you find the best storage solution for your just-in-case operations.