Just In Time
Just In Time (JIT) refers to the delivery of materials to production so that they can flow directly into the production process and be consumed. Materials or semi-finished products are therefore only delivered to production when they are needed in the production process.
For the producing company, this means that there is no need for warehousing, since Just In Time delivery coordinates the flow of materials with the time they are used in production. JIT delivery reduces inventory, reduces storage costs, and ties up less capital.
Just In Time processing
The prerequisite of the Just In Time process for the producer is a reliable supplier who always delivers the materials to production in the right quantity, in the usual quality, at the right place and, above all, at the right time. The otherwise occurring delivery bottlenecks or possible quality defects then threaten the entire production.
Just in time processing usually also means that deliveries are made continuously, sometimes several times a day. This must be provided by the supplier as well as scheduled in the production process.
Advantages of Just In Time
For the customer of Just In Time delivery, there are mainly cost advantages, since the costs of warehousing can be saved. The Just In Time process is mainly used in the automotive manufacturing industry. For the JIT supplier, this offers an option for a longer contractual commitment to the producer, which provides both partners with a certain degree of planning security.