Tweet

Just In Time

Written by: Phillip Ross

Article Overview: "Just In Time" is a factory warehousing idea that has roots in Japanese efficiency practices. It used to be that factories would warehouse the things they need to produce their products. Because of the timelines involved they might have three, six or even twelve months' supplies sitting in warehouses. By having inventory on hand factories could insure regular production schedules. They would not have to shut down production because they didn't have some necessary item.

Just In Time

"Just In Time" is a factory warehousing idea that has roots in Japanese efficiency practices. It used to be that factories would warehouse the things they need to produce their products. Because of the timelines involved they might have three, six or even twelve months' supplies sitting in warehouses. By having inventory on hand factories could insure regular production schedules. They would not have to shut down production because they didn't have some necessary item.

But in the last twenty years or so, electronic communications have changed the face of factory warehousing, along with everything else. In an effort to cut costs, factories have attempted to reduce warehousing expenses. Such costs were not seen to add any value to products. Large amounts of capital were just sitting in the warehouse. Somewhere along the line, "Just In Time" delivery methods were begun, and have proved to reduce warehousing expenses.

HOW DOES IT WORK?

Rather than having supplies sitting in warehouses, factories rely upon materials to arrive from their from their vendors "just in time" for use. That way they don't have to waste precious resources by having large amounts of materials sit in warehouses. Today, timely delivery of a wide variety of parts and products is essential to keep factories humming.

And as long as everything works right, it is a great system. Materials and products are "warehoused" in transit as they move from company to company during various manufacturing and production processes. It is truly amazing how much this works, and works well. It involves incredible planning and scheduling made easier by computerization.

MURPHY'S LAW

But occasionally Murphy's Law* asserts itself, and things don't go as expected. A flat tire, an accident, or the illness of someone critical to the complex chain of events can bring about unexpected delays. Just like you occasionally run out of milk at the table, factories run out of materials necessary for production.

Look closely at any manufactured item today and you will find a long chain of complex events that must take place during the production process. Often the factory that produces a product is not the same factory that imprints it. Everything is specialized to increase efficiency, quality, and to decrease costs. Again, most of the time things flow smoothly.

What has this got to do with the promotional products business?

Lots. Because promotional products are manufactured goods and depend upon the flow of "Just In Time" delivery. When any one link in this complex chain of critically timed events breaks, the whole chain is effected.

PLAN AHEAD

One of the more effective things you'll do to insure that you have your promotional products when you need them is to plan ahead. Planning ahead makes everything work better. Yet business being what it is, it isn't always possible.

So, factories offer quick processing. You can get 7-day service, 10-day service, even 3-day service in some cases. These services usually mean 3, 7, or 10 days from the final approval of the artwork, not from the day you gave the distributor the order.

Also, be aware that quick service is not free. If you need it next week, be prepared to pay extra. Not only does the factory charge extra, but overnight shipping costs more, too.

HOW MUCH LEAD TIME?

The norm is about three weeks, but to keep out of Murphy's way you should allow about five weeks from the time you place the order. If you allow three weeks, and something goes wrong, you are the loser. The potential cost to your business for not having what you need for an event, trade show, or whatever, is much greater than the time and energy it takes to plan ahead—or the additional cost of a rush order.

Related Articles

Article Tags:



Related Forum Posts
Re: UPDATES: New Campaign! New Layout! New Ideas! - We've also expanded the list for Contest and All-Time Leaders. It's great to now see David and Yinka on the All Time list and recognize the contributions they've made to the forums!
No B.S. Time Management - A great book I read on Time Management is No B.S. Time Management for Entrepreneurs by Dan Kennedy.
Books that should be written - [quote:1m0dcpd7]"The Idiots Guide To Sticking With One Thing At A Time and Not Doing Something New All The Time" [/quote:1m0dcpd7] I myself am a 'constructive' procrastinator... I don't know if I'm alone in this. I have about six or seven projects I'm working on at any given time. I get one project almost done... then my interest is piqued by another project and I work on that... I get burnt out and move to another...I know I do this so I have it arranged such that once I get bored or burnt out with one project, I can step right back into project 1 - or 2 or 3, and get that a little bit more done before moving on to something else. As long as you're organized and know where all your reference material/idea sheets are when you're ready to get back to work on each project, it should be fine. I also find that by stepping away from a project - I still work on it in the recesses of my mind so that when I go back to it - it's with some good ideas that I wouldn't have had if I'd continued on with it originally. Maybe I should write a book on how to Procrastinate Constructively... I've actually thought about doing that...because most people procrastinate, don't they...and very few are ever able to stop.
Re: Half of 2011 is gone - It's flying by so quickly! Still have plenty to do that I wanted to have done by now. Time to really step it up!
Re: Alexa Ranking Goals - This is a real juggling act! Time spent promoting my site is time away from developing products and looking after my clients!!


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

How to choose your executive coach -1

Adjusting Your World

Four Reasons Why Entrepreneurs Should Blog

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.