Barilla
Barilla
Just in Time Distribution was a buzzword to solve all the worlds transportation and distribution problems and lets look at how it is working now? In theory it makes sense to have Just in Time and with Fed Ex and other super streamlined systems it works fairly well when everything it working. Currently those companies who wish to guarantee next day service simply put their manufacturing facilities next to a Fed Ex regional hub or in Memphis itself or perhaps at one of UPS many mini-hubs or in Louisville, KY.
But wait what happens when there are severe weather issues and you need you part yesterday and the flights cannot be made and your P1 (priority 1 freight) ends up on a P2 or P3 timetable? So much for the World on Time in this just-in-time theory world. Of course you are saying that is not the norm, usually things can be there the next day.
Yes, usually and yet as many companies attempted to streamline their distribution systems, inventory warehouses and cut costs, there were fewer centers in which to send the stuff from. Yes, the computer shows a part on the computer in Milwaukee, WI and one in Orlando, FL. But they are having celebration riots in Miami due to the death of Castro and they are iced in Wisconsin. Meanwhile you need the part in San Antonio, but there is a Hurricane coming ashore in Galveston again.
Meanwhile once the traffic and crowds are gone, they learn in Miami distribution