![]() ![]() They use vertical integrations in their supply chain, keep production and sales geographically close by and implement strict lean inventory practices that ensure each store receives only the stock that they need. The retail apparel giant uses a carefully controlled and integrated process to deliver clothing to stores within 2 weeks of design. The company’s approach has had impressive results: lead times were reduced 40%, productivity increased by up to 20%, and new model introductions are 30% faster. The goal was to apply lean inventory techniques and Just-In-Time production. ![]() In order to streamline operations and cut costs, the company embarked on a massive global centralization project to integrate its ERP (Enterprise Resource Planning), supply chain, and CRM software. ![]() It had many disconnected production facilities spread across SE Asia, many operating independently in production and procedures. When Nike examined its worldwide operations it found areas to improve. Here, summarize successful examples of using JIT to save money, speed production, and remain flexible enough to adapt to future marketplace changes. Although pioneered in the auto industry, the benefits of JIT extend to many industries such as fashion, sporting goods and luxury. Its strict inventory management system ensures that only the minimum amount of stock is warehoused and items are only ordered and received when necessary for a sales order. The JIT methodology aims to reduce waste, create time efficiencies, free up cash flow and deliver increased customer responsiveness. This revolution in manufacturing methods began when Toyota perfected JIT, a method to reduce waste in time and materials along the entire production line from suppliers to consumer. As the global marketplace becomes more competitive and profit margins tighten, companies are looking toward a future that takes advantage of lean manufacturing principles and Just-In-Time inventory management for greater efficiency, cost savings and better service to customers. ![]()
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