The methodology “just in time”, of English just-in-time (abbreviated JIT), has been applied to manufacturing processes for decades, but the globalization of markets, the increase in competitiveness and the rise of electronic commerce have meant that JIT methods are being adapted to logistics throughout the entire supply chain.
In this article we explain what Just-in-time (JIT) is, its origin, the philosophy on which it is based, why it is being applied to logistics in modern supply chains and how the use of automated storage systems favors his adoption.
The origin of the Just-in-time system
During the 1950s and throughout the 1960s and 1970s, production systems were developed and perfected in Japan that allowed for greater efficiency, a faster response to the market, and a reduced need to store a large amount of inventory in the factory. He highlighted the system promoted by Toyota’s automobile manufacturing plants, which would be known as the TPS system (Toyota Production System) or simply Just-in-time. It would not be until the 1980s when this system would be extended to Western factories.
Originally, the usual thing was for factories to follow a push system, where each phase of the manufacturing process accumulated its production that would be withdrawn by the next phase.
The great revolution of the Just-in-time system as a production system was that it followed a pull system, where each phase of production asked the previous phase for what it needed when it needed it. In this way, only what was needed was produced when it was really needed and in the quantity needed, minimizing inventory buildup. To communicate the demands of one phase to the previous phase, the Kanban system based on instruction tags was created.
This made it necessary to optimize all manufacturing phases, as well as coordinated operation with suppliers and customers.
The philosophy of the Just-in-time system
The Just-in-time methodology, abbreviated JIT, owes its name to the philosophy of doing only what is necessary, when it is necessary and in the quantity that is necessary. Neither before, which would cause inventory accumulation or unfinished products, nor after, which would imply a delay in service to customers and a corresponding increase in dissatisfaction.
JIT is often identified with managing inventory and reducing the need for safety stock. But Just-in-time is more than that. JIT is based on the principle of eliminating all waste In other words, all those tasks that do not add value to the manufactured product or the service provided must be eliminated.
This forces you to maintain a problem-solving attitude by identifying the real causes. Instead of increasing the necessary safety stock to compensate for the differences between customer demand and the input of supplies, the real causes are identified to try to eliminate these differences. The JIT methodology is, in fact, one of the methods that contribute to mitigating the bullwhip effect.
The Just-in-time philosophy requires emphasizing global quality control, with a continuous improvement mindset. Defects in products, in raw materials, in components or in the services of suppliers or towards clients would cause a waste of resources with a high cost. In addition to quality, Just-in-time principles prioritize customer satisfaction and their demands, which can drastically condition the way in which products are manufactured, processed and distributed.
Just-in-time logistics
JIT applied to production systems increases the pressure on logistics, which needs to function with maximum efficiency. The JIT methodology requires that the relationship between the different suppliers (raw materials, components, services) and their B2B customers be fluid, with open and efficient communication.
With the globalization of markets, greater competitiveness and the rise of electronic commerce, consumers demand a greater variety of products and shorter delivery times. A traditional approach would tend to further increase safety stocks to cope with fluctuations in demand, but evolving markets and consumer behavior call for an approach that focuses on more efficient supply chains instead.
The Just-in-time system has been extending its application beyond production systems, already speaking of just-in-time logistics that applies JIT principles to customer service, order preparation, inventory management and to transportation.
In the management of the supply chain (supply chain management or SCM) warehouses are necessary at those points in the chain where the merchandise must stop. Either for storage until sale, or for geographical distribution or temporary storage while waiting for transport.
Warehouses must also follow the same JIT principles, requiring that everything that may be considered unnecessary be eliminated: streamlining picking tasks in order preparation, using automation systems that reduce inventory errors, speeding up the tasks related to the reverse logistics, optimizing the routes of forklift trucks or warehouse operators and using the most appropriate metal racking systems for each level of rotation and flow of merchandise.
Automatic order preparation
One of the most efficient ways to improve warehouse performance is through automatic order preparation systems.
The automatic dispensing Disban H designed by ATOX Soluciones Tecnológicas allows the preparation of orders at very high speed in a completely automatic way and synchronized with the stock control software. In this way, inventory errors are eliminated during operation.
ATOX automatic dispensers are also very robust and energy efficient. This allows them to support heavy workloads, as well as respond quickly to order picking at peak times. This characteristic has made Disban H automatic dispensing very successful in pharmaceutical logistics, where urban logistics warehouses accumulate most of the orders from points of sale at specific hours of the day, conditioned by the time slots of distribution. Disban H automatic dispensers allow them to provide service quickly, providing a solution to peak work situations.
Pick-to-light
The ATOX Soluciones Tecnológicas light-guided system is an automated system for pick-to-light and put-to-light operations. With this system, warehouse operators are able to prepare orders much more quickly while reducing inventory errors.
The versatility of this ATOX system allows warehouse personnel to be assisted both in the preparation of orders with pick-to-light operations, and in the classification of merchandise for dispatch with put-to-light operations, as well as in tasks related to the reverse logistics.
roller transport
One of the maxims of Just-in-time management systems is the elimination of unnecessary tasks. In this sense, the intelligent roller transport systems designed by ATOX Soluciones Tecnológicas make it possible to drastically reduce the movements of warehouse operators. In addition, combined with automatic dispensing and the light-guided system for pick-to-light operations, several warehouse operators can collaborate on the preparation of the same order without having to leave their post.
The ATOX roller conveyor system is a modular system that integrates diverters, sensors and intelligent motorized rollers. Its versatility allows any type of layout, including curved sections without loss of speed, uphill and downhill sections.
ATOX designs and manufactures its metal racks and storage systems tailored to each warehouse. With more than 50 years of experience and a solid international presence, ATOX provides its own experience to advise its clients and design the most efficient storage solutions according to their specific needs.