"Just-in-time" and its Logistic
"Just-in-time" is a concept at the convergence of
manufacturing and logistics that relies on freight transport, particularly trucking and containers
when global supply chains are concerned. It involves the delivery of
a component just before the assembly line requires it, which
reduces the inventory held at warehouses but increases the
inventory in circulation. Consequently,
freight forwarders must respect tighter delivery schedules and must
plan their operations accordingly in order to avoid delay.
The production unit (the factory) assumes a lower level of warehousing.
As a result, the trucks (vehicles) themselves assume the task of moving
storage units, thus the inventory is constantly in circulation.
Although "just-in-time" is a more productive form of supply
chain management, it is also prone to vulnerabilities since
interruptions can have significant impacts on production.