Four Reasons why forecasting software crucial for JIT (Just in Time) Organizations

All major auto manufacturing companies either large or mid size have implemented JIT (Just in Time) concept for their manufacturing units across the globe. JIT was pioneered, implemented and practiced by Toyota few decades back. JIT (Just in Time) concept is nothing but ensuring inventory to be available on time for its manufacturing or assembling units. Though these manufacturing organizations use JIT concept do they need sales & inventory forecasting software as they run on JIT (Just in Time).

Why it’s crucial?

• Accurate inventory forecasting – For organizations running on JIT system it’s very important to have its inventory to be forecast accurately to keep its manufacturing or assembling units be running on schedule or the system would get collapsed due to wrong forecasting methods.

• Critical components on JIT – Not all components can be made to run on JIT system as few of the components play a critical role in final output of the product. So it’s better to have forecast these components on higher level for usage at critical juncture with a small percentage of inventory in the system

• Collaborating with Suppliers – Suppliers supplying components or materials to JIT (Just in Time) organizations need to collaborate with vendors for accurate forecasting of components or materials and need forecasting software which works with suppliers and vendors IT infrastructure.

• After Sales Service – Although JIT (Just in Time) can be implemented for manufacturing components what about for after sales service? For parts to be used in after sales service organizations cannot implement JIT (Just in Time) as it would cripple the entire system of service and organizations image. So in order to have better after sales service support organizations need forecasting software with sufficient inventory levels for day to day operations.

JIT (Just in Time) has been implemented successfully by few major manufacturing units across the globe, but not 100% successful. So manufacturing organizations need forecasting software for forecasting inventory required for its day to day operation, critical components & components for after sales service.