Question

What would be the drawbacks of JIT (Just-in-time) system in a globalised supply chain?

How to solve this problem?

Answer 1

The major drawback of JIT is it is risky at times especially to co orodnate and get the inventories on time, arranging logistics can be sometimes difficult. This results in shortage of raw materials and can badly impact the production flow and order fulfillment. This problem can be solve by strategic alliance and maintaining better relationship with multiple vendors and should collaboratively work on the Just In Time requirements . This helps in reducing risk and ensuring the availability of materials on time. By creating a auto communication and tracking system analytics for supply chain can significantly reduce the risk in JIT.