Just In Time Systems Essay

1408 words - 6 pages

Devising an efficient system of counting and maintaining a stock of inventory items has long been an arduous task for many business owners. The old method of cataloging by part or item number has all but disappeared since the proliferation of electronic catalogs and the use of computer software and web-based ordering/monitoring systems. Inventory management is necessary for owners who want to maintain a stocking service for quick turnaround to help ensure total customer satisfaction. An item on a managed inventory list must be maintained to avoid shortages of frequently used items. Even when utilizing an inventory management system, occasional shortages will still occur. To be successful in today's fast-paced, highly-competitive environment, business’ need to have the necessary parts in stock or have reliable suppliers to meet customer demands at a moment's notice. Either way, shops must have a practical, efficient method for managing inventory in order to stay in business and satisfy their customers. The most efficient way to get this done is through the use of a Just-In-Time (J-I-T) system of inventory management. The service that Cardinal Health provides is an example of this type of J-I-T system which allows them to get the right quantity of goods to the right place and at the right time.
Efficient inventory management is essential in order to provide the customer with a high level of service. The ability to ship inventory on schedule and get just the right amount of product where it needs to be in a timely manner is one of the major factors that helps determine customer satisfaction. Consumers do not like to wait in lines, come back later, or shop somewhere the product is often out of stock. These are the types of problems that lead to a customer walking across the street to the find a particular product somewhere else. In addition, efficient inventory management leads to a more cost-efficient operation (Reid Ch 12, 2002). The goal is to keep inventory on the shelves for the least amount of time as possible. This prevents a high percentage of capital from being tied up in inventory. Through the use of automation and computer based systems, companies are able to control their inventory based on real-time needs instead of historical projections. This helps reduce the guess work in how much inventory to stock and when to stock it. Regardless of whether or not the system used is an automated Just-In-Time system or not, the importance of inventory management can not be overstated. An efficient and effective system helps lead to a cost-efficient operation and a high degree of customer satisfaction.
Next, the focus of many industries today is shifting towards more and more automation and reliance on computers. The World Wide Web has altered the way companies and individuals interact with each other. What was once thousands of miles away or days in the future can now be obtained instantly with the click of a mouse button. That being said, the...

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