How suppliers and customers work together using just in time.
Part Three.
There are at least four ways in which customers and suppliers can work together to provide reliable
delivery to the customer at a lower cost share.
Production schedules promptly include suppliers in the product design help suppliers improve their production
methods have specially closed facilities shadow productions good deals promptly the customer and the
supplier must share production plans on realtime basis.
It is important for the customer to notify the supplier immediately of any change in the scheduled production
volume and product mix.
This information gives the supplier greater flexibility in adjusting his schedule.
Include suppliers in the product design.
If suppliers are included in the product design it will be easier for them to modify their production
design if required so that component is going to be easier to produce with consistent quality at a lower
cost helps suppliers improve their production methods.
It is in the producer's best interest to share the production expertise and help suppliers improve their
systems.
Many users of Justin Time Systems make transfer of technology explicit in their contracts have specially
closed facilities if the suppliers ship to a customer from a long distance.
There will be more uncertainty in their delivery due to traffic congestion or bad weather etc..
It also takes longer to ship the products one way to reduce delays in delivery is to locate major suppliers
in the vicinity.