Higher demand requires a higher stock of merchandise. Many clients order significant amounts of products during certain seasons.
Just in case companies can indulge inefficient marketing strategies with the extra stock in hand.But the just in case companies, who had excess inventory, kept the supply chain going because they did not have to stop production.
Many companies following just-in-time inventory management strategies had to shut down because of a lack of inventory. Just in case inventory management strategies save the global supply chain in emergencies like the recent pandemic, when the whole world came to a standstill for weeks and months on end.Moreover, these companies purchase lists when the cost is at its lowest. Since companies keep a large stock of inventories available at all times, it saves a lot because it incurs vast discounts on bulk purchases.companies to produce goods while getting more supply. companies benefit from the reduced risk of lost sales because they have excess inventory stock. If you compare just in time (J.I.T.) vs just in case (J.I.C.), J.I.C.More advantageous is that companies with extra stock are ready to sell when competitors are out of stock. With the excess stock in hand, they can supply products whenever demanded. The first and most significant pros of just-in-case inventory management strategies are that a company can compete at any level of competitiveness by adopting these.Pros of Just in Case Inventory Management Strategies Overall costs incurred in just-in-time companies are less because they don’t pile up extra stock, and there is no added cost on storage and warehousing. If you compare just in time (J.I.T.) vs Just in case (J.I.C.), inventory management strategies are best for small-scale companies.Moreover, since a lot of time is saved just in time, companies can quickly produce and deliver new products. inventory management strategies optimise production by eliminating delays by automating processes and reducing product defects. As a result, maintaining massive warehouses is also not required. They are buying raw materials from local suppliers to ensure timely stock delivery. Just in time, inventory management strategies also cause a reduction in the cost of purchasing and managing excess inventory.When production is less, you can also quickly identify defective products. It reduces the risk of unsold inventory or unused piled-up stock. They eliminate the risk of overstocking and damage to excess inventory.
#Just in time inventory advantages pro#
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