Just-in-Time Management is the Solution to Inventory Problems

In this day in time in terms of daily business operations quality is everything. One major tenet of customer service is being able to provide a customer with the desired product when it is needed. It is important for companies to have adequate inventory levels to accommodate the needs of customers. In some cases, having too much inventory is not good. Just in time management can help companies prevent inventory problems.

Just in time management has become a lifesaver for many companies. According to Taiichi Ohno of Toyota, who is often referred to as the father of just in time management, it helps meet the demands of the customer. We all have been conditioned to believe that having lots of inventory on hand is always good. This is not always true. Idle inventory can be costly and could be a potential threat to product quality. Several companies such as Dell computers, McDonalds, and Toyota have been very successful using just in time. By using this method, companies are able to use the inventory that they have on hand without excess. According to Dunn and Bradstreet excess inventory is wasteful and should be eliminated if possible. Just in time management enables companies to reduce costs. It will eliminate the need to store surplus inventory in facilities such as warehouses and storages.

For years, I worked in the retail industry, which is plagued with inventory problems. Excess inventory is marked down and sold for a reduced price. Now the company I worked for did not have as many inventory problems because they had an automatic replenishment system. Because of this system, we hardly ever had excess inventory because once our inventory levels reached zero it would automatically re-order the product. This was very cost effective for the company but there was a slight downfall because when inventory was in transit we were not always able to meet the customer's product demands.

Just in time management is very beneficial for companies because it maintains quality and reduces costs. Excess inventory can be a major problem. If companies want to either prevent or eliminate inventory problems I highly recommend using the just in time management system.