Supply Chain Management is a term used to describe the relationship that exists between an organisation and its network of suppliers and buyers. Just-In-Time (JIT) management is the ability of an organisation to integrate its systems and processes with that of the supply network. Describe a supply chain where this occurs and discuss the challenges and benefits of the JIT methodology.
A Just -In -Time System is a system which organizes the resources, information flows, and decision rules that enable a firm to realize the benefits of JIT principles. (Larry P. Ritzman)
The main purpose of a just in time system is to eliminate through improvement activities various kinds of waste lying concealed within a company. During periods of slow
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They use their own website (www.Dell.co.uk)to take customer’s personal enquiries and orders. Dell cut out other distributions and mainly focuses on manufacturer to consumer channels which cut out the middle man thus reducing unnecessary costs. This can help Dell improve their efficiency whilst increasing continuingly increasing their close customer relationships. Dell use the quote “Keep the customers coming back not the products” (Dr W Edwards Deming) to help increase their profit margins and whilst continually improving to meet their customers need. A customer can order their own custom computer, have it built by Dell in three days and have it delivered to the customer’s doorstep within one week. This example here shows how efficient and effective JIT can be when competing in such a big saturated market, and it can be the difference between success and failure.
Just In time production also has its drawbacks, by relying heavily on close supplier relationships disaster could be around the corner if one breaks down or has a unexpected turn of events which can prove to be very costly to the business. One way which JIT try and eliminate excessive waste is they keep a very small amount of stock in their warehouses so they don’t have capital tied up with stock. However a minor disruption in supplies from one business supplier to another could cause the supply chain network to cease at very short notice resulting in a major problem for the business. This was