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Logistics customer service - JIT requires a coordinated effort?

User Arezou
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Final answer:

JIT delivery requires a highly coordinated effort between suppliers, manufacturers, and other entities within the supply chain to optimize production and delivery times. It necessitates advanced technology, better transportation, cohesive policies, and a focus on labor rights. Any disruption, such as a strike, can significantly impact the entire chain, emphasizing the importance of strong management and labor relations.

Step-by-step explanation:

Just-in-Time (JIT) delivery indeed necessitates a coordinated effort between different entities within the supply chain. JIT systems require that suppliers and manufacturers work closely together to ensure that materials and goods are produced and delivered only as they are needed. This reduces the need for storage and decreases the chances of overproduction or underproduction. The advancement of technology, improvements in transportation methods and vehicles, and robust policies are all essential for maintaining supply chains, especially during national emergencies.

The application of JIT systems can have significant impacts on labor rights and wages, as it can put downward pressure on them due to the need for low-cost labor. It is therefore critical for companies to change their labor policies and invest in their workforce at both international and national levels. Coordination problems can be challenging, but they are surmountable when entities work together in good faith and with the incentive of mutual profitability.

Moreover, the use of JIT creates vulnerabilities within the supply chain, as seen in the example from the mid-1990s when workers in a unionized factory went on strike, affecting the entire supply chain for General Motors. This highlights the necessity for strong coordination and management of labor relations to support JIT methodologies effectively.

User Anil Sidhu
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