By Prakash Nair
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Vendors have a difficult role to play in the JIT supply chain because often they do not have any visibility into the actual demand and must rely on incomplete or intermittent information to make supply decisions. This can create problems in their own supply chains. 2 Why did this happen? WHAT IS NEEDED FOR A JIT SYSTEM TO WORK EFFICIENTLY? Just-in-time inventories run on a pull supply chain philosophy. Kanban/JIT is based on actual demand measurements. As the production process occurs, parts are consumed, and the Kanban signals are alerting the system that the inventory is being depleted.
I was getting the hang of this idea of pulling products through the system instead of practicing shoving the product through as most vendors in the grocery industry had practiced for 30 years. I turned down the offer as I felt I had a lot more to give as a vendor rep, and I was just having too much fun breaking the mold as this newfangled vendor/buyer. MOVING TO A DEMAND-DRIVEN SUPPLY The better I got at managing my portfolio at the co-op wholesaler, the more pressure I got from my managers to push product into the account.
They had to react quickly or the production system would suffer. The JIT production system was practicing pull methodologies, and the cost savings were very good. In the late 1980s and early 1990s, management was hearing about this new efficiency process and how it could work in the distribution channel. You can imagine the concern on the face of the distribution managers— could their own production system react like the upstream suppliers, and where would those predictable demand numbers come from?
30 Strategies for Education Reform by Prakash Nair