Just-in-Time (JIT) delivery is a supply chain management strategy that focuses on delivering products or goods right when they’re needed. Its objectives include minimising inventory holding costs and wastage to ensure overall efficiency. When it comes to healthcare products with limited shelf lives, JIT delivery not only mitigates the potential risk to patient safety but also reduces the financial losses of Fast-Moving Consumer Good (FMCG) sector due to wasted resources. In this article, we will discuss the best practices of JIT delivery, shedding light on how it helps distribution services achieve optimal efficacy.
1. Demand Forecasting and Collaboration
Accurate demand forecasting is pivotal in Just-in-Time (JIT) delivery, especially within the Fast-Moving Consumer Goods (FMCG) sector. Various factors, such as seasonal trends, consumer preferences, and market dynamics, significantly influence demand in this industry. Mishandling these fluctuations can lead to either excessive inventory or stockouts. The former ties up financial resources and storage capacity, while the latter risks shortages of essential consumer goods. Fortunately, FMCG companies can harness historical data, market insights, and statistical analysis to forecast future demand effectively, enabling informed decision-making for JIT delivery. Consequently, distribution service providers are able to determine optimal order quantities and ensure timely deliveries to meet consumer demands.
2. Lean Inventory Management
Embracing lean inventory management is crucial for achieving JIT delivery, especially within the FMCG sector. This approach, which focuses on streamlining material flows and keeping stocked inventory to a minimum, offers significant benefits in terms of production efficiency. For instance, an FMCG company deals with certain Stock Keeping Units (SKUs) that consistently receive steady orders over several weeks or months. By adopting a lean strategy, the company ensures that these specific products are readily available when needed, reducing the likelihood of excess inventory in line with JIT delivery principles.
In addition, the implementation of advanced inventory management systems further improves the process by offering real-time insights into stock levels, demand patterns, and potential fluctuations. With this precision, FMCG companies can effectively track inventory data to make swift adjustments in response to dynamic market demands.
3. Efficient Logistics and Transportation
Efficient logistics and transportation are integral to JIT delivery, contributing to the timely movement of fresh produce, dairy products, beverages, and other goods. As part of the process, strategic route planning considers factors like temperature controls, fuel efficiency, and vehicle capacity, to optimise delivery routes. Such meticulous planning ensures the undisrupted transportation of goods with a shelf life, particularly perishable ones. Complementing this, real-time tracking mechanisms offer immediate insights into the location and condition of the supplies. By continuously monitoring the movement of goods, companies in the FMCG sector can make modifications based on inventory status, ensuring the successful delivery of products to their destination and overall supply chain efficiency.
FairPrice Group Supply Chain (FPGSC) and Its On-Time-In-Full (OTIF) Delivery Metrics
FPGSC’s On-Time & In Full (OTIF) Delivery Metrics evaluates the efficiency of complete order deliveries against scheduled dates. Suppliers, including those from the healthcare FMCG industry, benefit from their well-structured logistics network and analytics-backed supply chain. FPGSC’s inventory tracking system and other analytical capabilities provide front-end visualisations and robust backend data architecture to ensure supply chain agility in the long run. Businesses can tap on our reliable fleet and experienced transport team that prioritise customisable trucking solutions and advanced route planning to achieve excellence in supply chain operations and resilience.
Learn more: Impact of Delivery OTIF on Customer Satisfaction and Retention
FairPrice Group Supply Chain Business (FPGSC) serves as the supply chain division for Singapore’s largest supermarket operator. We specialise in creating, overseeing, and operating comprehensive supply chain solutions to meet the daily logistics requirements of local organisations.
