Just in time in logistics: objectives and advantages

Although it is now applied to logistics, just in time, or just-in-time in Spanish, is a methodology that was invented for production.

Within logistics there are several methods when it comes to working, and one of them is known as just in time, which is imported and has a series of advantages that we wanted to highlight to learn more about it.

What is just in time?

Although it is now applied to logistics, just in time, or just-in-time in Spanish, is a methodology that was invented for production. In fact, sources indicate that it originated in Japan in the 1950s, and that it was developed by Toyota, one of the leading car brands.

Its idea was simplicity, to eliminate everything that did not add value, free up space in warehouses, ensure there was always the right amount of raw material, reduce lead times, and ultimately be more efficient.

How is Just in Time applied?

Stock reduction

With this method, only what is necessary is produced and only when the next stage in the chain requests it, so the stock on hand is the minimum necessary. Nothing is manufactured and stored in anticipation of demand; instead, stock leaves the factory only when consumers are going to buy it. That avoids filling warehouses, with the cost that entails, especially in very expensive areas such as large cities, like Madrid or Barcelona in Spain.

Reduction of losses due to waste or expired goods

Producing just enough is important, but it is essential when we are talking about perishables, such as food, which have an expiration date that can be short. Thus, if only the food that is going to be consumed immediately is produced, losses due to expiration or even damage in the warehouse are avoided, something that can always happen.

Greater flexibility

This method takes flexibility to its fullest extent, since changes are very simple. By not having warehouses overflowing, increases in demand for certain products can be managed better, replacing what is there with others that customers request more often, among other things.

Greater control of production failures

Another characteristic of just in time is that only the necessary amount is produced. It is not manufactured on a large scale and stored; instead, it is produced in smaller quantities and always according to current demand, which means that production failures are noticed earlier. Losses are thus reduced, since fewer items have to be thrown away or very small quantities redone, which does not pose a problem for companies.

Just in Time at InPost

At InPost, with our shipments to pickup points we have managed to adopt some aspects of this methodology, such as greater flexibility in deliveries, thus reducing transport costs and congestion in large cities, improving the efficiency of logistics.