Does just-in-case (JIC) inventory management, where companies keep a buffer supply of products, parts and materials, deserve a resurgence?
Just In Time stock was the ideal.. until a couple of years back.
More often we are hearing about Just In Case Inventory management. Simply, it means hoarding materials and equipment to avoid the supply chain blockages which have been so challenging since the start of the Covid pandemic.
Since the introduction of just-in-time (JIT) methods in the 1960s, manufacturers become rightly obsessed with keeping inventory levels low. Relatively tight stocking of parts and raw materials does yield advantages, such as lower costs, less waste and easier change orders. But as we’ve recently seen, an over-reliance on JIT leaves manufacturers and retailers vulnerable to supply chain shocks. So, does just-in-case (JIC) inventory management, where companies keep a buffer supply of products, parts and materials, deserve a resurgence?
FORKLIFT FINDERS – 35 years of success in supplying new and high quality used forklifts across Australia, the Asia Pacific and beyond. We source high quality used forklifts from a global network. IF WE DON’T HAVE IT. WE’LL FIND IT!
Inventory managers have decried the just-in-case inventory system as generating higher costs compared with JIT. JIC takes up more space and entails several risks, including that excess inventory becomes obsolete before it can be used or sold. Just-in-case has several advantages in the present, however. If a supplier goes out of business or can’t fulfil orders at the volume required, the company won’t run out of supplies. If customer demand spikes unpredictably, businesses have enough products to make those sales. And if raw materials prices rise precipitously or an act of nature throws a temporary wrench in a supply chain, companies have the stock on hand to wait out the storm, whether literal or figurative.
For materials handling, this probably means increased demand for warehouse space, more intensive use of the equipment and further labour requirements. Much of that is great news for manufacturers and vendors, but not so much for end-users who will not only be working harder but may also find themselves stretched to meet demand. And the cost of machines will no doubt be on the rise again.
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We have enjoyed 35 years of success in supplying new and high quality used forklifts across Australia, the Asia Pacific and beyond. Our business is making light work of heavy lifting with value for money, ‘fit for purpose’ lift trucks. We source high quality used forklifts from a global network to give you great deals, a high level of reliability and a big reduction in operating costs!
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