Just In Time Purchase

Zero stock management is one of the terms that have earned it a spectacular place in the purchasing segment. Just-in-Time manufacturing, or JiT, can be seen as another way for companies to save money. JiT (Just in Time),

While previously high inventory was the key to profitable business, after 2000 stock has become more costly. Today’s global crises and economic uncertainties have helped the companies adopt the zero inventory principle.

It is also a very useful way to reduce costs. As stocks decrease, the product from the supplier does not become surplus. Logistics costs are also eliminated as the products are supplied when requested, and they arrive directly from the supplier to the purchaser. Moreover, warehouse costs will not arise due to these reasons, and space issues will be resolved along with this system.

Customer orders are made faster since production stops will not occur either. It does not have a congested and narrow production concept, and defective production is reduced as well. And of course quality will also improve. Teamwork is more coordinated and communication is easier and more transparent. The problem can be resolved at that moment.

In fact, just in time (JiT) is exactly the same with zero-stock production; however, in general, people do the same thing. These methods can also minimize office expenses.

Even if the stock cannot be reduced to zero, the aim of reducing it to near zero is also on the agenda of large companies. Companies such as Yataş, Uniliver, Otokar and Strawberry Furniture reduce stocks to the minimum possible. Large companies allocate only ten to twenty percent of their production to stockpiles. The remaining 80 to 90 percent represent products that have gone on sale. In summary, production has increased based on orders.

Toyota is another company that embraces zero inventory production. For example: A 1-day production process for a car that can be produced in 15 days allows the company to produce, and with this in mind, it embraces both time and labor profits. Zero inventory management can be found to be effective, especially on e-commerce sites. Large E-commerce sites such as Gittigidiyor or Hepsiburada resellers operate with a certain stock limit.

Just in Time does not have its advantages. Because of the rights of customers, there are stones that prevent zero stock production. There may also be quality issues. Process errors are also possible. Such reasons are likely to be the root of the companies’ decision to move ahead completely with zero inventory.

During this process, the indispensable zero inventory blocker will be some decision errors. This process also includes the main principles of zero inventory management. These are:

• Ensuring that the processes involving the company or the company are continuously and better carried forward

• Ensuring savings for all areas and activities within the company

• Maintaining a self-control system that encourages the participation of all employees, accompanied by mutual respect and equal rights.