The world is constantly evolving. The changes that are taking place have an impact on supply chains. Industrial packaging manufacturers have to respond to the challenges posed by different logistical operations, however complex they may be, in times of greater or lesser uncertainty.
One of them is Just In Time manufacturing, which orients production to demand.
Its origin comes from Japan. In the mid-twentieth century, large Japanese companies were looking for more efficient production systems, which in turn would allow them to reduce factory inventory. Toyota was the first company to apply the Just in Time method, under the name of Toyota Production System, in automobile manufacturing plants, with the aim of eliminating from the production process those elements that did not provide real value.
Since then, automotive companies, technology companies, fast food chains around the world and today, e-commerce companies use this model to make their processes more efficient, optimize costs and respond better and faster to customers.
What are the advantages and disadvantages of the Just in Time method in logistics?
- Zero defects: an error can cause delays and increase stocks.
- Zero breakdowns: this implies scheduled maintenance of work tools.
- Zero stocks: this generates storage and space costs.
- Zero lead times: reducing production cycles reduces waiting times, equipment preparation and transit times.
- Zero paperwork: reducing bureaucracy to a minimum.
Applying this method provides better management, greater flexibility and savings, but requires millimetric coordination in all the links that make up the supply chain.
Advantages of JIT
- Reduces inventory levels and costs associated with purchasing and warehousing, since only what is in demand is manufactured.
- Minimizes losses, obsolete products, expired products or products that lose value when stored, by having a minimum stock.
- Reduces time and unnecessary trips to locate the merchandise.
- It favors a closer relationship with suppliers.
Disadvantages of JIT
- Possible delays and lack of supplies.
- Less access to special prices for small-scale purchases.
- Increased costs when changing suppliers.
- Scarce capacity to react to demand peaks.
Packaging for Just in Time logistics
As with all other supplies, packaging in JIT operations must be available when it is needed. Companies specializing in this type of packaging must be able to offer packaging solutions that help simplify operations and speed up delivery times, that are easy to handle and help reduce storage costs.
This logistics requires ergonomic packaging, which allows assembly/disassembly in a very simple and safe way, folding solutions, which facilitate internal movements and save space, as well as customized packaging, which optimizes the logistics process to the maximum.
Contact us. At 360 Eco Packaging we can help you find the best packaging or storage solution for your Just in Time operations.