Just in time in logistics: objectives and advantages

Although it is now applied to logistics, just in time, or ‘‘on time’’ in Portuguese, is a methodology invented for production. We tell you all about it.

There are several working methods in logistics, and one of them is known as just in time, which is imported and offers a number of advantages that we want to highlight so you can learn more about it.

What is just in time?

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

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

How is Just in Time applied?

Inventory reduction

With this method, only what is necessary is produced and only whenever requested by the next stage of the chain, so the existing stock is the minimum indispensable. Nothing is manufactured or stored waiting for demand. Stock leaves the factory only when consumers are going to buy it. This avoids filling warehouses, with the cost that entails, especially in very expensive areas such as large cities.

Reduction of losses due to waste or expired goods

Producing only enough is important, but it is essential when we talk about perishable products, such as food, with a short shelf life. Thus, if only the food that will be consumed immediately is produced, losses due to expiration are avoided or even due to damage in the warehouse, something that can always happen.

Greater flexibility

This method takes flexibility to its highest exponent, because changes are very simple. By not having overcrowded warehouses, it is possible to better manage increases in demand for certain products, swap the ones that exist for others more requested by customers, among other things.

Greater control over production failures

Another characteristic of just in time is that only enough is produced. Mass production is not carried out for storage, but rather smaller quantities are produced and always according to the demand of the moment, which means that production failures are detected earlier. In this way, losses are reduced, since fewer items have to be removed and very small quantities redone, which does not represent a problem for companies.

Just in Time at InPost

At InPost, with our non-home deliveries, we are able to adopt some points of this methodology, such as greater flexibility in deliveries, thus reducing transport costs and congestion in large cities, and improving logistics efficiency.

Distributors group together the parcels going to the same Ponto Pack and in this way the route is optimized. Customers can go to any Ponto Pack during very broad opening hours, including weekends. In addition, postal agents spend less fuel on deliveries, which are usually several dozen parcels at each location.

And, if you want to make a shipment via InPost, you can do it in just 4 steps.