Growing Your Business with Just-In-Time Principles
Dusty shelves and slow-moving product are the bane of a retailer’s existence. Wouldn’t it be nice to have less money tied up in product and more money available for other things?
That’s what Just-In-Time promises. And that’s what Petra can do for you.
Just-in-Time—Just the Facts.
So what is the concept of Just-In-Time (JIT)? Basically, it refers to the concept of only keeping on hand as much material or inventory as you need. The original concept came from manufacturers in postwar Japan, who used innovative supply chain techniques to deal with lower initial capital, lack of real estate, and lack of natural resources. By monitoring and planning their inventory more carefully, companies in Japan were able to massively increase production while freeing up funds that might otherwise have been tied up in inventory to use for other purposes.
It spread to the United States in the late ‘70s and early ‘80s, making its way through the manufacturing industry and supplanting other philosophies. Then it spread to the retail sector, where its processes have affected everything related to how product gets from manufacturer to consumer.
Walmart has been a leader in Just-In-Time inventory management for years, including its innovative practice of cross-docking: moving product directly from suppliers’ trucks to their own trucks to minimize needed warehouse space.
Regardless of how retailers apply it, the idea of keeping inventory as small as possible and fostering a closer relationship with suppliers is one that is useful for any company. You can apply the principles of JIT to streamline your operations and grow your business.
Keeping inventory low allows you to free up more capital for other important parts of your business, like infrastructure or advertising. Having the flexibility to order smaller amounts of product and not deal with a large inventory on hand is a tool that more you can take advantage of.
How Can Petra Help your JIT Quest?
If you’re trying to apply this principle, it necessitates a few things from your main distributors:
- Quick turnaround on orders
- Low or nonexistent minimum orders
- Good relationship
All of these things are essential to ensuring that the supply chain to your store is as short as possible—and if the worst happens, and you wind up with a stockout, it’s easy to tap your supplier for more.
Luckily, all of those things are workable with Petra. We have a commitment to same-day shipping whenever you get your order in during business hours. Combine that with FedEx’s fast service, and we can resupply shelves quickly, meaning you don’t have to keep as much stock on hand taking up shelf space.
Petra also doesn’t have minimum order requirements. If you’re trying to apply Just-In-Time principles, this is useful—if you run a little low but don’t want to put in a big order, you can just top up. Especially with less-popular items, you can feel comfortable keeping less stock on hand because you can always get a few more when you need them.
If you’re looking to grow your business through online sales, Petra also offers highly reliable drop-shipping capabilities. This allows you to offer stock that you never even have to put your hands on. It lowers your risk and your responsibility to unpack, stock and market products!
Lastly, Petra strives to build a personal relationship with our customers and suppliers. Our sales staff and customer service staff are all in-house, which makes it easier for us to build connections with you. You can call anytime during Central Time business hours and a representative will always answer. If we don’t know the answer to your question, we’ll find out. That close relationship is key to applying Just-In-Time principles to your business. When the retailer and the supplier are on the same page, it helps smooth over the problems that inevitably arise in any business.
The Takeaway
Just-In-Time principles can help you maximize your business, lower on-hand inventory and free up capital for other things. Petra can help you apply the principles of Just-In-Time to your business by shortening your supply chain. Let us be your warehouse.