Just-In-Time Purchasing From The Supplier's Point Of View

A manufacturer-supplier just-in-time (JIT) relationship results in dramatic changes in the way the supplier performs its operations. Planning is one of the areas most widely affected by JIT. To fulfill a JIT strategy, it is critical that planning be coordinated in: 1. sales, 2. purchasing, 3. financ...

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Bibliographic Details
Published inIndustrial management (Des Plaines) Vol. 31; no. 6; p. 23
Main Authors Willis, T Hillman, Huston, C Richard, Aby, Carroll D
Format Magazine Article
LanguageEnglish
Published Norcross Institute of Industrial and Systems Engineers (IISE) 01.11.1989
Subjects
Inventory control
Just in time
Purchasing
Scheduling
Suppliers
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Summary:A manufacturer-supplier just-in-time (JIT) relationship results in dramatic changes in the way the supplier performs its operations. Planning is one of the areas most widely affected by JIT. To fulfill a JIT strategy, it is critical that planning be coordinated in: 1. sales, 2. purchasing, 3. financing, and 4. warehousing requirements. As compared to non-JIT circumstances, under JIT, there must be tighter production schedules and more control over transportation methods and inventories. Additional warehouse space may be necessary, suppliers must be financially secure, and personnel must be conscientious. Extensive negotiations are needed prior to consummating a JIT commitment. Vendors probably will find that they should not and cannot be JIT to everyone. Perhaps the most important sincerity measure is whether the buyer has a true JIT strategy in place for all operations. This can be ascertained by talking with employees. If the buyer thinks that JIT means suppliers deliver products or materials in small quantities when requested, and nothing else, there will be a lose-lose result.
ISSN:0019-8471