MHD SUPPLY CHAIN
LOGISTICS REVOLUTION Has just-in-time logistics reached its expiry date? Daniel Kohut, Senior Solutions Advisor at Blue Yonder, says businesses can still reap the benefits of running a just-in-time operation if they better utilise data and artificial intelligence.
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ust-in-time (JIT) logistics management has been highly regarded as an advanced inventory management technique, designed to increase efficiency, cut costs and decrease waste by receiving goods only as they are needed. With inventory purchased or produced at short notice there’s
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no need to have unsold inventory taking up valuable warehouse space. Leading companies, such as Apple and Kellogg’s, have adopted this method to improve cash-flow and maintain efficient inventory levels. Tim Cook, CEO of Apple, famously said, “Inventory is fundamentally evil. You kind of want to manage it like you’re in the dairy
business. If it gets past its freshness date, you have a problem.” The JIT methodology requires businesses to be extremely agile with the capability to handle a much shorter production cycle. Following unprecedented demand and record e-commerce order fulfillments across the globe during the recent
