The Benefits of ‘Just In Time’ Distribution

The Benefits of ‘Just In Time’ Distribution

Just In Time distribution has the potential to transform your business by saving you time and money. This delivery method helps to ensure that your customers, service staff or field engineers receive the goods they need, at the exact moment they’re required.

Also known as ‘JIT distribution’, Just In Time uses the ‘pull’ system, whereby products aren’t ordered until they’re needed. When compared with the ‘push’ system, in which funds can be tied up in large supplies of stock, this can be a far less costly approach for businesses. And, stock requires storage, which also costs money.

In fact, there are many benefits for businesses using the Just In Time distribution model, which include the following:

  • Lower overheads – no need for expensive, unnecessary storage
  • No danger of stock becoming obsolete, or items going out of date
  • Less money tied up in stock allows greater flexibility for businesses
  • Shops can use all of their available space for displaying goods, with no need for warehousing
  • Businesses can respond to trends immediately, leading to increased customer satisfaction

The rapid growth of the internet has helped to create a world in which we expect everything to be done almost instantly. Whether your customer is ordering a product, or waiting for an appliance to be fixed, the expectation is that the necessary items will be delivered, and that repairs will be carried out, in double-quick time. Any delays, and the chances are your customer will head to your competitors next time round, and once you’ve lost a customer, the chances of getting them back are slim. Customer satisfaction and customer retention are inextricably linked, so providing a fast and efficient service is absolutely paramount for any successful business.

Rather than using up precious space by stocking hundreds of parts, many of which will quickly become obsolete, businesses are increasingly seeing the benefits Just In Time distribution provides. After all, the better the service, the greater the ongoing benefits for your brand, so it pays to choose your distribution partner wisely.

When deciding on a Just In Time distribution partner, it’s important to remember that big isn’t necessarily better. Supply chains on the East Coast of the US were severely disrupted in the wake of Hurricane Sandy, enabling smaller, more diverse companies to take the lead. The same problems occurred in the UK too – witness the chaos caused by the infamous ‘Beast from the East’. Smaller distributors have the flexibility to cope with changing circumstances much more quickly than larger ones, ensuring your packages reach their destination on time, every time.

If your business relies on a fast turnaround of stock, then it’s probably time to consider the benefits of Just In Time Distribution. At GenRev, we have a wealth of experience when it comes to providing Just In Time Distribution services. We understand the challenges facing our clients, so we work tirelessly to ensure that we always exceed their expectations.

Please contact us to find out more about our Just In Time distribution service.

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