Essay About Supply Chains And New Partnerships

Jit Case
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JITs ability to improve organizational efficiency is undeniable. Another significant benefit that a company can look forward to is improvement of supplier relationships. With JIT, managers are looking to their suppliers to tighten ends so that costs to keep products stored till needed do not occur. Communication is essential for this transition to take place. Manufacturers are being more detailed about their expectations of quality of goods and crucial delivery schedules. In addition, as supply chains are evolving new partnerships are forming. Companies realize that they can control timetables better with location. Instead of using a suppler five states away, a manufacturer can hire out a local machine shop or shipping company to tighten quality and timing of receivables. An example of these tactics was visualized by Peaden Air Conditioning,” We mapped out all the wholesale businesses in the region. There were seven within a 10-mile radius plus another dozen or two within 100 miles. We met individually with our key local distributors to discuss our thoughts and exchange ideas (Wilkos 2008).” To get your suppliers to commit inventory to your needs and ship what you need in a timely fashion, manufacturers can contract to that supplier to buy exclusively from them. This provides improved commerce and improves supplier relationships. These new considerations to improve supply chains also allowed reinvigorated competition from other local machine shops on distribution companies. As before, most of these were too small to handle the output needs of a larger corporation. The changing field allowed for smaller orders at a higher rate. Competition to bid for a job can drive costs down in the process. Sometimes the lowest bidder does not meet the requirements for the required job. This statement is to further justify a working relationship with the supply chain. In doing so, one can see exactly what are the capabilities of the supplier. A working relationship can layout many items to improve and agree on,” a list of potential issues including, but certainly not limited to: timely deliveries from distributors; after-hours and weekend parts and supply needs; emergency needs from major hurricane damage (Wilkos 2008).” While it has been pointed out keeping inventories low can be beneficial, a breakdown in any of these aspects of supply chain can be catastrophic and bring business to a halt. A company using the JIT method may only keep a few days worth of product at their disposal. If a problem were to persist from a long wait, consumers may find themselves going else where for a product. JIT supply chain methods have proven useful in ROI so that a startup company may utilize it in early product development. For instance, a newly announce partnership between Tesla and Toyota to the consumer can become a powerhouse of innovation of new electric automobiles and technology. To Tesla this partnership grants, a once struggling company to get ideas off of the drawing board to working prototypes, access to one of the worlds most elite supply chains to tool new ideas quickly. On a proper timetable Tesla and many over companies can cut cost in a fashion that aids consumer in a lower price