Just-in-Time II (JIT II)

Tags: Glossary

Vendor-managed operations take place within a customer's facility. JIT II was popularized by the Bose Corporation. The supplier representatives, called 'inplants', place orders to their own companies, relieving the customer's buyers from this task. Many also become involved at a deeper level, such as participating in new product development projects and manufacturing planning (concurrent planning).

What is Just-in-Time II (JIT II)?

Just-in-Time II (JIT II)

Just-in-Time II, also known as JIT II, is a vendor-managed operations strategy that takes place within a customer's facility. This concept was popularized by the Bose Corporation and has since been adopted by many other companies across various industries.

In a JIT II system, the supplier representatives, often referred to as 'inplants', are responsible for placing orders to their own companies on behalf of the customer. This relieves the customer's buyers from the task of placing orders and allows them to focus on other important aspects of their role. The inplants work closely with the customer to ensure that the right products are delivered at the right time, in the right quantities.

One of the key advantages of JIT II is the close collaboration between the supplier representatives and the customer. Inplants become an integral part of the customer's operations and often participate in activities beyond order placement. They may be involved in new product development projects, providing valuable insights and expertise from the supplier's perspective. Additionally, they may contribute to manufacturing planning, engaging in concurrent planning to optimize production processes and minimize waste.

By implementing JIT II, companies can achieve several benefits. Firstly, it helps to streamline the supply chain by reducing the number of intermediaries involved in the ordering process. This leads to improved communication, faster response times, and ultimately, better customer satisfaction. Secondly, JIT II allows for tighter inventory control, as the supplier representatives have a deep understanding of the customer's demand patterns and can adjust orders accordingly. This helps to minimize excess inventory and associated holding costs.

Furthermore, JIT II fosters a collaborative and mutually beneficial relationship between the customer and the supplier. By working closely together, both parties can identify opportunities for continuous improvement, cost reduction, and innovation. This partnership approach promotes trust, transparency, and long-term sustainability.

In conclusion, Just-in-Time II (JIT II) is a vendor-managed operations strategy that involves supplier representatives working within a customer's facility. This approach, popularized by the Bose Corporation, offers numerous advantages such as streamlined supply chain processes, tighter inventory control, and enhanced collaboration between the customer and the supplier. By embracing JIT II, companies can optimize their operations, improve customer satisfaction, and drive overall business success.

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