Final answer:
The JIT purchasing system necessitates working with reliable suppliers who can deliver high-quality parts on time, which is crucial since companies seek to minimize storage and respond quickly to quality control issues.
Step-by-step explanation:
Since JIT (Just-In-Time) purchasing has gained popularity within the United States, the purchasing function has been preoccupied with trimming the overall supplier base in quest of so-called reliable suppliers. JIT systems require suppliers to deliver high-quality goods in precise quantities at specific times, as storage is minimized and parts are frequently delivered directly to production lines. In pursuing JIT principles, companies focus on suppliers who can consistently meet these stringent requirements, without causing production delays due to quality issues or untimely deliveries.
Developed originally by Japanese automakers and adopted by American car manufacturers in the 1980s, this approach shifts the burden of quality control and delivery to the suppliers, ensuring problems are identified quickly before large quantities of defective parts are incorporated into products. Consequently, this has led to a reduction in warehousing jobs and increased competition among suppliers, often resulting in the establishment of numerous parts factories in proximity to assembly plants to maintain that one day's drive delivery radius.