“Just-in-time” and its Logistic

“Just-in-time” and its Logistic

In a simple manner, a supply chain is based on the delivery of parts to be assembled and then distributed to markets. Logistics can be seen as synchronizing this process so that deliveries of parts, assembly (manufacturing), and deliveries of goods are coordinated. “Just-in-time” is a concept at the convergence of manufacturing and logistics that relies on freight transport, particularly trucking and containers when global supply chains are concerned. It involves delivering a component just before the assembly line requires it, which reduces the inventory held at warehouses but increases the inventory in circulation. Consequently, freight forwarders must respect tighter delivery schedules and plan their operations accordingly to avoid delays and disruptions. The production unit (the factory) assumes a lower level of warehousing. As a result, the trucks (vehicles) themselves assume the task of moving storage units with a large share of the inventory is constantly in circulation. Although “just-in-time” is a more productive form of supply chain management, it is also prone to vulnerabilities since interruptions can significantly impact production.