The automotive industry demands just in time (JIT) shipping. JIT is a management strategy that aligns raw-material orders from suppliers directly with production schedules. Companies use this strategy to increase efficiency and decrease waste by receiving goods only as they need them, which reduces inventory costs. This method requires producers to forecast demand accurately.
The JIT inventory system contrasts with just-in-case strategies, wherein producers hold sufficient inventories to have enough product to absorb maximum market demand.
While meeting JIT requirements is often the largest hurdle to overcome within the auto industry, doing so offers many benefits. The connectivity and real time data of Industry 4.0 makes even the strictest shipping deadlines possible.
Together we can turn your logistics strategy into your strongest line of defense against costly shutdowns.