JIT II transportation and logistics
By Lance Dixon -- Purchasing, 3/23/2000
People often ask how JIT II differs when applied in transportation. Compared to straightforward purchasing applications, the basic approach and attitudes are similar but the techniques are quite different.In both purchasing and transportation JIT II programs, the customer makes a supplier's employee resident at their site and gives that person authority to act in their systems and departments. In purchasing, the supplier's in-plant representative purchases materials and services from the supplier. In transportation, by contrast, the in-plant person helps to operate the customer company's logistics system.
The most important difference is the need for access to the transportation provider's major computer systems. JIT II in purchasing works with or without state-of-the-art computer systems. In transportation, the ability to see materials shipments in transit is the foundation for treating that material as functional inventory that can be accessed as needed. The resulting ability to improve responsiveness to market demand while lowering inventory investment represents a dramatic business improvement.
Another major difference in the transportation: The customer needn't be concerned about safety of company funds (purchase orders are not being used on a daily basis) or trade secrets (as in-plant transportation reps do not participate in product development).
As usual, questions or comments about JIT II are welcomed at the telephone number listed below.
JIT II is a service mark of BOSE Corporation. Concepts were conceived and implemented by Lance Dixon, executive director, JIT II Education & Research Center. To order JIT II video (26min.), send $295 (check or MO) to Purchasing Magazine, P.O. Box 497, New Town Branch, Boston, Mass. 02158. For JIT II information, textbook, seminars, call (508) 766-7080 or write BOSE JIT II Education & Research Center, MS 4A1, The Mountain, Framingham, MA 01701.
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