Sierra Products Made to Order

Reducing Inventory with JIT Manufacturing

Utilizing a Just-in-Time (JIT) manufacturing process eliminates the need to hold onto stock inventory. To implement a JIT process, clients depend on partners who can respond in a time-sensitive manner to orders. This inventory strategy helps to reduce wasted materials and employ an efficient production process. When working with trusted supply chain partners, JIT manufacturers can achieve a truly variable cost model.

Accommodating Seasonality in Production

Employing a contract or toll manufacturer for seasonal or limited-time production runs eliminates the overhead costs of under-utilized capital equipment. Instead, a contracted manufacturer will supply the facility, equipment, and experts needed for operations, along with providing expertise for sourcing raw materials.

Whether your product is seasonal or is in limited-time supply, JIT production provides the optimal inventory strategy. By employing a contract manufacturer who specializes in JIT production, clients reduce the risk and costs associated with building a new facility and holding stock inventory.

Raw Material Planning

The key component to JIT production is response time. When receiving raw materials, it is crucial that all trusted supplying partners respond accordingly to ensure that production timelines are met; to prepare for this process, partners plan ahead.

Raw material planning includes planning order and delivery timelines, as well as checking that delivery times align with equipment and staff availability. Manufacturers often analyze trends in high-volume orders to help anticipate production cycles.