Article - Essay Example

Download file to see previous pages... The article notes that Just-in case distribution helps companies to reduce the cost of keeping large stock by ensuring just in time supplies. In addition, the just-in case distribution also aids in reducing the cost of transportation since shipping of goods is on demand. The article asserts that the just-in-case plan was a response to the vulnerable just-in-time supply chains. The article notes that just-in-time management exposes companies to a greater risk of running out of merchandise in case of disruptions. Indeed, the article reckons that combining the just in case with just-in-time strategy was a means of seeking to a balance between holding the minimum inventory possible and yet never running out of stock.
The just-in case just-in time distribution strategy expands and increases the network of distribution centers hence reducing the distance by moving the inventory more close to the customers. Apparently, the article shows that companies can achieve greater efficiency upon transporting its goods to the customers immediately. As such, many companies seek competitive advantage amidst stiff competition arising in market by offering excellent customer service. Multiple and strategically place distribution channels help in minimizing the time, money and distant spent in delivering merchandise to the customers. However, the article observes that retailers often avoid transporting merchandise to the last miles by directing the nearby customers to collect their merchandise from the nearby shop.
From the content of the article, I feel that the Just-in-case is an effective strategy in supply chain management. Indeed, the just-in-time management exposes companies to a greater risk of running out of merchandise in case of disruptions. I therefore relate the article with the benefits of the just-in case management that allows retailers to enjoy a lot of stability since there is efficient distribution of goods and they do not have to rely on one ...Download file to see next pagesRead More