Just In Time :: essays research papers

Collaborate or Perish! The just-in-time supply model—an absolute requirement for e-commerce fulfillment—calls for closer collaboration with suppliers and partners than ever Today's corporations do not rely simply on brand loyalty. The sale now goes to companies that can implement a â€Å"just-in-time† business practice by quickly providing customized products. To do so, your organization can no longer be hierarchical. Instead, it must have an open-minded management team that can channel the necessary resources to meet demand. Consumer demand for customized products and services delivered quickly has forced retail outlets into a â€Å"We won't make it until you order it† mentality. What's more important, retailers are telling their suppliers, â€Å"We won't ask you to make it until our customers order it.† Consequently, recognizing and responding to customer demand must be instantaneous. Both vendors and suppliers require the ability to transfer information at fiber-optic speed across their distribution channel. However, speed is just one factor. Successful product management and distribution requires synchronization with suppliers at the fastest speed possible, creating a collaborative relationship with all suppliers down the chain. Your organization can no longer afford an â€Å"us vs. them† mentality with your suppliers—it must be â€Å"we.† Previously, the business model assumed that inventory existed or was in the manufacturing process, that is, â€Å"available to promise† (ATP). Today, executing the just-in-time model requires a â€Å"capable to promise† (CTP) value stream. In this article, I'll examine how your business can implement a CTP value stream and how doing so will affect relationships with suppliers. I'll also discuss the technology that is necessary to implement the just-in-time model internally as well as with multiple suppliers across the supply chain. Capable to Promise The ATP and CTP dates are extremely important, in that companies want to tell customers when they will receive their products. ATP is based on the premise that your company has a finished-goods inventory that contains fairly standard products. Companies build an inventory of products to sell, and perform an ATP calculation, providing the date for product delivery. A finished-goods inventory ensures that when the customer calls and says, â€Å"I'm looking to buy a car battery,† you have a standard supply of batteries ready for delivery. ATP also applies to goods that are in the production process. For example, your company may be in a situation where it does not immediately have the product in the finished-goods inventory, but is near enough to completion that it can guarantee delivery within a well-defined timeframe.