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LOGISTICS FOR HEALTH & BEAUTY INDUSTRY

HEALTH & BEAUTY

We specialize in the health and beauty industry and offer scalable e-commerce solutions, retail consolidation services, and vendor compliance processes for mass retailers.

LOGISTICS FOR FOOD & BEVERAGE INDUSTRY

FOOD & BEVERAGE

We partner with prominent food and beverage labels, and offer frozen/cold, temp-controlled, and ambient/dry storage for efficient shipping to major food retailers.

3PL for Consumer Goods Industry

CONSUMER PACKAGED GOODS

We partner with a variety of fast-moving retail brands spanning from footwear to apparel to small electronics.

Logistics for Industrial and Automotive Industries

INDUSTRIAL & AUTOMOTIVE

Our strategic solutions are customized to meet the unique requirements of various industrial and automotive sectors.

Private Equity

PRIVATE EQUITY

From corporate carve-outs to management buyouts, we have experience scaling supply chains for private equity firms and their portfolio companies.

About ODW Logistics

ABOUT

We are a 3PL provider driven by our culture and focused on Delivering the Difference with purpose-built logistics solutions.

Why ODW Logistics for your 3PL

WHY ODW LOGISTICS

Accelerate your growth with a 3PL that adds value to every link in your supply chain.

ODW Making a Difference

ODW MAKING A DIFFERENCE

ODW Logistics is dedicated to serving the communities in which we live and work and engaging with our associates.

Logistics Careers at ODW

CAREERS

Our growth is fueled by our extraordinary people delivering the difference to our clients every day.

3PL Service Case Studies

CASE STUDIES

Learn how we've helped our clients to deliver them logistics solutions that produces results.

ODW Logistics Blog Insights

ODW BLOG INSIGHTS

Read our latest blogs that give you insight into a variety of logistics topics.

ODW Logistics News and Press

NEWS + PRESS

Learn about our latest awards, partnerships, and featured trade publication articles.

3PL Services Videos

VIDEOS

Watch our latest videos that share more about who we are, our services, and more.

jit-delivery
04.20.20171 min read

How Is Just-in-Time (JIT) Used By A 3PL?

JIT inventory management is one of the most basic, yet important concepts in an efficient manufacturing process.

It is a prime example of how good supplier relationships are vital to an efficient manufacturing supply chain.

Commonly used as a method for improving efficiency and minimizing cost by third party logistics companies, a Just-in-time (JIT) inventory strategy is one of the primary benefits provided by Manufacturing Support Services companies.

JIT requires tight coordination between production and vendors for it to work right. Under JIT, raw materials, parts, and components are ordered and delivered just as they are needed for producing finished goods. The concept can extend further up the supply chain to include sub-assembled parts as well.

In simple terms, the JIT inventory management technique reduces inventories of raw materials, work in progress, and finished good to almost zero.

The parts do not arrive earlier or after they are required; but they arrive just as they are needed.

3PL’s use JIT as a strategy to provide several specific benefits to their clients beyond just cost reduction and enhanced efficiency.These additional benefits are realized through:

  1. Having little or no inventory levels means that holding costs (such as warehouse space) and carrying costs are minimized.
  2. Funds that used to be tied up in inventory are freed up and can be used elsewhere.
  3. Space previously used for holding inventory can be used for more productive uses.
  4. Under JIT, production setup time is reduced resulting to quicker response time to client’s needs. Also, greater output potential is realized when firms switch to JIT.
  5. Obsolescence rate is decreased since raw materials and goods are not held for long. Further, risks such as damage of inventory by fire or theft are eliminated.

When a company works with a 3PL for manufacturing support services, there is clearly the expectation of value and a positive ROI. JIT is often the “lowest hanging fruit” and first process to implement in this type of arrangement.

Through proper planning and well managed supplier relationships, efficient JIT inventory management is an attainable goal for any manufacturer.

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ODW Logistics

Since 1971, we’ve been providing warehousing, distribution, and transportation solutions for hundreds of brands. We operate as an extension of your business to control costs throughout your supply chain that deliver you a competitive advantage over your competition.

RESOURCES

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