By submitting this form, you are agreeing to the Terms of Use and Privacy Policy.
Just-in-time (JIT) logistics is a production and inventory management system that aims to reduce costs and increase efficiency by minimising the amount of inventory held in stock. It works by having materials, parts, and products delivered as needed instead of in bulk, as is common in traditional inventory systems.
This system is used to minimise the cost of storing excess inventory, reduce the cost of shipping and handling, and improve customer service by ensuring that the customer receives their order quickly.
One of the key benefits of JIT logistics is its ability to reduce the cost of inventory. By having the materials delivered as needed, companies are able to reduce the cost of holding excessive inventory. This is especially beneficial for companies that produce seasonal or cyclical items, as it allows them to better manage their inventory and reduce costs associated with storing high volumes of inventory.
Another benefit of JIT logistics is its ability to improve customer service. By having materials delivered as needed, companies are able to offer same-day or next-day delivery, which can be a major advantage in highly competitive markets. This also allows companies to better meet customer demands and improve customer satisfaction.
JIT logistics also helps companies reduce their shipping and handling costs. By reducing the number of shipments, companies can reduce the cost of shipping, handling, and storage. This can be especially beneficial for companies that ship large volumes of goods.
Overall, JIT logistics is an effective tool for reducing costs and improving efficiency. By minimising the amount of inventory held in stock, companies are able to reduce costs associated with storing and shipping inventory, while also improving customer service.
The Global Just-in-time (JIT) logistics market accounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030.
Just-In-Time, Convoy’s newest truckload freight service, ensures on-time performance within 15 minutes of the delivery time scheduled. This innovative just-in-time delivery method offers retailers and manufacturers the unrivaled flexibility to manage variable demand along with the service quality compliance they want.
According to internal data from Convoy, shippers can lower their annual transportation expenses while retaining superior service quality levels by using Just-In-Time. Precise on-time delivery is a vital necessity for many industrial and automotive industries in order for their supply chains to run profitably.
Early or late shipments might cause production stoppages, which generally cost these companies money. Similarly, consumer product producers frequently have to comply with strict on-time delivery regulations at retailers’ locations or risk fines that can result in thousands of dollars being added to the cost of each shipment.
