JUST IN TIME INVENTORY SOFTWARE
You may find that implementing a wide-ranging JIT setup requires you to invest in additional IT hardware and software infrastructure at your business.ĭoing so obviously involves additional costs, not to mention maintenance and training costs. A good packaging company with an established support team should be able to spot any issues quickly and advise as appropriate. The answer is not simply to forecast based on the previous year’s figures but to consistently monitor usage for emerging trends and patterns. This factor also sets up the problem for next year, as businesses assume packaging use is likely be lower again, and the company could start experiencing issues from too little stock. Over-stocking isn’t too serious with packaging, but it can seriously affect businesses using a system like this for perishable goods. In that case, each delivery provides too much packaging, meaning stocks begin increasing (and negating the benefits of a JIT service). Ultimately this could mean the company runs out of their required corrugated packaging before the next delivery date.Ĭonversely, suppose business is shrinking (due to economic factors, for example).
This approach means that this forecasts are incorrect if sales pick up or grow year on year. The problem is that many people base this on the previous year’s figures – and assume that business is going to remain relatively static. For example, this may be in perhaps one week – ordering based on seven days of average packaging use). When ordering packaging on a just-in-time supply agreement, most businesses only order the minimum amount required to get them through to the following replenishment date. The first potential issue is one inherent in the idea behind that of just-in-time supply – that of forecasting.
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