What is just in time (JIT) shipping and can it improve your logistics?

JIT shipping offers a range of benefits, but there are risks involved when relying on predictions and demand forecasts.
just in time shipping

In a fast-paced world where e-commerce is rapidly becoming the norm for most shoppers, there is more pressure than ever for shipping to be quick and reliable.The rise of Just in Time (JIT) shipping is just one way supply chains, retailers and distributors are adapting their methods to maximise profits for every order.

JIT shipping is exactly that – Just In Time. It’s a production planning process that utilises low inventory levels, only replenishing raw materials, products and sometimes even labour at the precise moment when – or slightly before – its required.

How does JIT shipping work?

This method frees up capital compared to keeping high levels of inventory in stock at all times, reducing overheads such as warehouse storage and lowering inventory risk costs.

Just in Time shipping has long been used by manufacturers who simply can’t hold vast quantities of stock, such as car makers or other manufacturers of large, complex goods. These industries have been able to rely on JIT shipping thanks to accurate demand forecasting, but now that software can provide similar services to all kinds of services and industries, could JIT shipping benefit the wider e-commerce and logistics world?

Using statistical modelling to detect trends, or even relying on confident knowledge of seasonality to predict demand, can make JIT shipping and the subsequent cost savings a reality at almost every stage of the supply chain. 

Take a risk or trust the experts

However, the inherent risk always remains that if data is inaccurate or incorrect, predictions can go wrong. JIT shipping requires effective data and forecasting capabilities as well as an extensive knowledge of inventory and visibility of costs, including external influences from holidays to economic factors.

Another way to ensure your logistics are efficient and cost-effective is to outsource either part or all of your logistics processes to a third-party logistics provider like Sprint Logistics. However you manage your supply chain, Sprint Logistics can help you with expert advice and comprehensive logistics services.

Get in touch today to see how Sprint Logistics could benefit your business.