Freight forwarders offer many benefits to their business partners, but the greatest benefit is efficiency. Every strategy freight forwarders use is designed to make the shipping process less of a headache for their clients. This includes navigating consolidation, handling international customs, and ensuring that goods are arriving on time and undamaged. In a world of immediate gratification, slow supply chains can put businesses at a disadvantage. It has become extremely important for businesses to have quicker and quicker turn around times.
Just in time delivery services refer to a different approach towards a supply chain. Instead of pushing surpluses of products, components, and materials through a supply chain, these elements are only produced and shipped as needed. This can help businesses cut down on storage costs as well as cut down on over-producing. Through JIT, the process starts once there is a need for the material, component, or product. By reducing the needed materials in stock, JIT can help companies increase their profits. But naturally, planning JIT delivery can be a logistical hurdle for many companies.
In order for JIT to be operable and efficient, businesses need a highly-responsive and flexible supply chain. There are four main components that need to be considered when working with JIT delivery schedule: product, component mix, volume, and delivery. The core benefit of JIT is saving on storage & warehousing while additionally decreasing wasted materials. In order for the system to operate effectively, businesses need to forecast their supply chain. Meeting shipping deadlines is only possible when a business can accurately forecast its supply chain both with what they will need to receive and when they will be able to ship out.
Many manufacturers choose JIT strategies because it saves them on storing goods. But on the other hand, it can create a large problem when demand increases and you are unable to complete orders. In order for JIT to be a correct solution for your company, you need to consider the following. How flexible is your supply chain, how predictable is your demand, and how streamlined is production. If you can control these variables, JIT shipping may be right for you. Working with an experienced freight forwarder, you can learn how to improve these variables and how demand forecasting works. It is vital that your freight forwarder be flexible and provide quick turnaround on shipping solutions. Otherwise, it does not matter how streamlined production is at your company or how well you can predict demand, if you are unable to get materials at the right time or ship out goods at the right time, JIT shipping will not work.
Bruning International provides flexible shipping solutions. Our team has provided shipping solutions for decades and is always looking to help companies evolve and improve how they tackle international importing and exporting. If you are interested in just in time shipping, we would be happy to go over the logistics.