Just In Time
Just In Time
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.
Just In Time - To learn more about this author, visit Phillip Ross's Website.
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"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.
Just In Time - To learn more about this author, visit Phillip Ross's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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