Alvin Koo's Blog

After learning about Zara International’s new logistics management strategy the major takeaway was that products should be delivered “fresh.” Waiting time, as we learned, results in opportunity costs and products becoming obsolete. To press for an improved and effective supply chain, many firms nowadays are adopting the Just-In Time logistics strategy (JIT). Just-In Time logistics work by having specific parts or materials delivered to the manufacturer at the time they are needed for assembly. Or in retail, this means having the products delivered on the specific day the intended sales will take place. This reduces the amount of warehousing expenses as well as being able to eliminate the amount of time products spend sitting in warehouses. This is particularly true for automobile manufacturers. In the last Automotive Logistics Conference, the JIT logistics system was widely promoted to automakers in India. Since then, many automakers followed suit and are adopting this system to better assist in supply chain management.

JIT is just one of many new innovations in the field of logistics and supply chain management. Despite not being directly related to revenue, I realized that efficient logistics could actually help firms cut costs and deliver products to customers very efficiently.

http://web.ebscohost.com.ezproxy.library.ubc.ca/ehost/pdfviewer/pdfviewer?vid=4&hid=14&sid=f3f3a325-a11b-4e5c-a9ce-deae0c644607%40sessionmgr4 

http://logistics.about.com/od/supplychainglossary/g/JustInTime.htm