Businesses used to depend on warehouses to ensure their operations. Those days are long gone. Companies now depend on shippers more heavily than ever before, and warehouses are becoming more of a full service logistics provider. That is because the common way to run a modern supply chain is with just in time logistics. Let’s see why this type of management is so popular.
Elimination of Storage Costs
Trimming the fat is an important part of competitiveness. Bulk commodities account for 70% of the tonnage transported across the U.S. every year and shippers use JIT to reduce spoilage and maximize revenues, especially in volatile markets.
Enhancement of Velocity
The widespread adoption of the JIT system attests to its effectiveness and efficiency. It has performed fairly well since President Ronald Reagan deregulated the trucking industry in 1980. JIT depends upon small loads delivered at a greater frequency and delivers greater flexibility.
Delivery of Appropriate Materials
Just in time delivery ensures that the goods get to the right place when the recipient needs it. This minimizes the length of time that inventory needs to be stored by effectively using cross docking and transloading services.
For more information on the just in time economy, please see this paper from the National Surface Transportation Policy and Revenue Study Commission.
With this much riding on your shipments, it is essential that you select a dry van trucking company you can depend upon. That’s where a nimble carrier like CCC Transportation comes in. We are fully Electronic Data Interchange compliant, just one of the ways in which we guarantee the service you need.