Execution of just-in-time (JIT) purchasing facilitates the realization of primary objectives. Firstly, it contributes to reduced inventory levels as well as inventory holding costs. Secondly, JIT purchasing aids in improving lead-time reliability. Consequently, this improvement yields higher levels of customer service. In addition, companies realize lower safety shock requirements. Besides, it results in cutting on working capital essentials for organizations. Thirdly, JIT purchasing yields scheduling flexibility. As such, focus converges on the minimization of purchasing lead and setup times (Benton, 2014). As a result, alleviation of confusion in the manufacturing plant becomes viable.
Inventory management could be implemented in order to meet the benefits of executing JIT purchasing. As such, this strategy remains pivotal in demystifying the link between inventory control as well as the purchasing function. Consequently, JIT purchasing facilitates the establishment of essentials for efficient inventory management. Besides, JIT purchasing comes in handy in combining decisions that could be closely correlated. All in all, this strategy aids in inventory management.
Delegate your assignment to our experts and they will do the rest.
The knowledge of JIT purchasing remains pivotal for project managers. The strategy presents significant benefits as opposed to traditional techniques. As such, managers are better placed to realize primary objectives of the firm, including facilitating the improvement of the quality of incoming materials and minimizing lead times. Efficiency and cost-effective are essential pillars of any successful business (Benton, 2014). As such, project managers should be well-vast with this kind of information and strategize to implement it in their firms.
Organizations immensely benefit from integrating JIT purchasing strategies into their workflow processes. As such, customers experience improved satisfaction through quality products. Besides, the company can efficiently stage its competitive advantage in the market by adopting the JIT production control system. Moreover, opportunities lie in the cooperation between suppliers and the production firms due to the reduction of costs of parts.
References
Benton, W.C. Jr. (2014). Purchasing and supply chain management (3rd ed.). New York, NY: McGraw-Hill Irwin.
