Just In Time deliveries are fast becoming the lean tool of choice by most logistics consultants when revolutionising a company’s supply chain. The leanest method of managing this is to have the supplier deliver small quantities as you require them direct to your manufacturing plant / retail outlet and where this works there is no need to plonk a 3rd Party Logistics provider (3PL) in the middle, however there are numerous factors that necessitate the requirement for having a 3PL partner between you and your supplier, some of which are outlined below:
- Distance – If your suppliers are based in China or the USA it is not going to be practical or cost effective to have them drip-feed you with small quantities of stock
- Lead Times – Where your suppliers have a considerable lead time, ordering small quantities will not be practical for them or for you
- Buying Power – Buying in bulk gets you a lower price on the products purchased, you will need to do a cost benefit analysis to determine if the price paid to the supplier for receiving smaller quantities more often works out better in the long run than buying in bulk and supplier hubbing
- Contingency – Just In Time deliveries by your supplier are great when they run smoothly, however, there will be occasions when your supplier cannot get the deliveries to you on schedule.
In the above instances, having your suppliers feed stocks into a Store-All Logistics warehouse where we can manage the scheduling of collections and deliveries, store your products in a suitable and secure environment – keeping a buffer stock in line with your contingency policy, whilst also drip-feeding your factory / shop to suit your rates of consumption is the ideal way to flexibly manage this supply chain. Benefits:
- Free up Space – reduce or completely eliminate warehouse / storage space allowing you to convert existing stores to increase manufacturing / retail capacity
- Free up Resources – without a warehouse there is no longer a need for the staff, equipment and other expenses that come with running a warehouse
- Gain Reliability – instead of waiting for various suppliers to send in their deliveries through various carriers at various times, you will receive a single scheduled delivery from Store-All Logistics at agreed intervals
- Keep a Contingency – always have a minimum buffer stock close to hand, Store-All Logistics can provide emergency deliveries where required, whilst having the buffer stock also gives you breathing space to deal with suppliers’ inability to maintain supply
- Flexibility – without being restricted by the size of your own warehouse it couldn’t be easier to scale up or down the number of suppliers, delivery sizes or buffer stocks
