What is Just-in-Sequence (JiS) delivery?
Procurement logistics is about managing the ever-changing dynamics in the marketplace. The earlier and more profound the measures are taken, the more likely it is that potential can already be exploited in purchasing. Procurement logistics combines distribution and production; this involves all activities that ensure the supply of all relevant goods to the company.
Just-in-sequence (JiS) delivery represents a further development of just-in-time, which enables much more specific goods handling.
proLogistik explains the basic features of the principle, highlights beneficiaries of this process and covers other aspects surrounding this delivery method.
Definition and explanation: Just-in-sequence delivery (JiS)
Classic just-in-time enables companies to receive the goods they need for further processing in exactly the right quantity at the desired time. This reduces the cost of warehousing by shifting much of it to road, rail or river. Here, however, aspects such as the correct sequence do not play a role; the supplier merely ensures that a steady flow of goods is guaranteed in accordance with the "assembly line principle".
Just-in-sequence delivery (JiS) is different: this type of delivery takes just-in-time a step further, as goods are delivered exactly as they are needed, based on quantity, type and time. They arrive at the right place in exactly the right shape to allow them to continue working there without delay.
Advantages of Just-in-Sequence (JiS) delivery
Particularly in highly competitive industries such as the automotive sector, it is important to use time as well as other resources wisely. To make matters worse, the range of products on offer is extremely diverse. One and the same module exists in countless shapes, colors and variants, which would require very complex stock-keeping.
Just-in-sequence (JiS) delivery, on the other hand, is based on a continuous electronic data exchange between the supplier and the customer. Since transports are planned and, above all, timed down to the last detail, processes are optimized as best as possible.
An overview of the main advantages of just-in-sequence (JiS) delivery:
- Simplified production through overall reduced complexity in operation
- Reduced inventory costs due to the elimination of storage capacity
- Demand-driven exchange of goods without building up inventories
- Enabling the production of individual products without additional costs
- Direct integration of the modules into production
- Optimized use of space in assembly
- Direct communication via Electronic Data Interchange (EDI)
In short, manufacturing companies are able to act much more specifically in favor of the needs of the market. Since the production cycle essentially determines the supply, sources of error or unnecessary cost blocks can be effectively eliminated.
Challenges due to just-in-sequence (JiS) delivery
As can be seen from the above explanations, just-in-sequence (JiS) delivery requires a high level of data exchange and communication. This not only affects sensitive areas of individual companies, but also requires established structures.
Aspects considered to be a disadvantage of just-in-sequence (JiS) delivery:
- Higher dependence on internal as well as external technology
- Increased effort for smooth communication between all stakeholders
- If applicable high costs due to wrong deliveries
- Production downtime due to severe weather conditions or similar, resulting in delays along the supply chain
Important: Especially where products are to be further processed, just-in-sequence (JiS) delivery is used. The synchronization of production processes creates flexibility, which, however, requires close interlocking.
