What is a Just-In-Time (JIT) Logistics Strategy?
Just-in-time logistics is a strategy that involves delivering goods at the exact moment they are needed in order to increase the efficiency of the supply chain. This strategy minimizes inventory costs, which helps businesses save money. JIT strategies are used by companies in different industries, from retail to manufacturing, to ensure that the products and materials they need are always available when they need them.
What's included in this Just-In-Time (JIT) Logistics Strategy template?
- 3 focus areas
- 6 objectives
- 6 projects
- 6 KPIs
Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.
Who is the Just-In-Time (JIT) Logistics Strategy template for?
The Just-In-Time (JIT) Logistics Strategy template is for logistics teams and businesses that want to develop strategies for just-in-time logistics operations. The template helps logistics teams create a plan for optimizing their inventory management, reducing shipping wait time, and improving order-to-delivery time. The template also helps businesses save money by minimizing inventory costs.
1. Define clear examples of your focus areas
When developing a Just-In-Time (JIT) Logistics Strategy, the first step is to define clear focus areas. A focus area is a broad area of improvement that you want to focus on, such as optimizing inventory management or increasing efficiency. For each focus area, you should identify objectives, set measurable targets (KPIs), and implement projects to achieve those targets.
2. Think about the objectives that could fall under that focus area
An objective is a specific, measurable goal of a focus area. For each objective, you should set measurable targets (KPIs), and implement projects to achieve those targets. Examples of some objectives for the focus area of Optimize Inventory Management could be: Reduce Inventory Costs, and Reduce Shipping Wait Time.
3. Set measurable targets (KPIs) to tackle the objective
A Key Performance Indicator (KPI) is a measurable target that you set to track progress towards achieving an objective. For each KPI, you should set an initial and target value, and a unit of measure (e.g. days, dollars, etc). For example, under the objective of reducing inventory costs, a KPI could be to reduce overall inventory costs, with an initial value of $30 and a target value of $20.
4. Implement related projects to achieve the KPIs
A project (action) is an activity that is designed to help you achieve a KPI. For example, under the objective of reducing inventory costs, an action could be to implement Just-in-Time logistics.
5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy
Cascade Strategy Execution Platform helps businesses create, manage, and track their strategic plans. It enables teams to quickly and easily develop their Just-In-Time (JIT) Logistics Strategies, and helps them measure and track results in real-time.