In modern warehouse management, companies are faced with the challenge of organizing their inventories both cost-efficiently and reliably. Two main strategies have been established in this area: just-in-case (JIC) and just-in-time (JIT). While JIT focuses on demand-oriented production and storage, just-in-case logistics focuses on holding sufficient inventory for every kind of eventuality. In this blog article, we shed light on the just-in-case (JIC) principle, its advantages and challenges, and its implementation in practice. We will also show how the combination with the OTIF key figure (On-Time, In-Full) maximizes efficiency and customer satisfaction.
The just-in-case strategy is based on the idea that companies produce, deliver and store raw materials and finished goods in advance. This allows them to ensure that there is always sufficient inventory available to bridge potential disruptions in the supply chain. This method makes it possible to keep excess inventory in the company's warehouses, ensuring a continuous supply even during unforeseen spikes in demand.
Advantages:
Challenges:
Successful implementation of the just-in-case (JIC) principle requires a well-organized warehouse structure and efficient management systems. This is where modern warehouse management systems such as the WERX software suite from TGW Logistics come into play. Our software automates the management of warehouse items, ensures precise traceability of products and minimizes picking errors.
A key performance indicator in logistics is OTIF (On-Time, In-Full). OTIF measures the proportion of deliveries that arrive at the destination according to the quantity and schedule specified in the order. This metric provides accurate information about a company's logistical performance and has several advantages:
The combination of the JIC strategy with a high OTIF ratio offers significant benefits for customers. Just-in-case logistics ensures that there is always sufficient stock to fulfill any order, even in the event of sudden spikes in demand or supply chain disruptions. At the same time, a high OTIF rate ensures that these orders are delivered on time and in full.
This combination leads to higher customer satisfaction, as customers can be confident that their orders are not only available, but also delivered on time and in the desired quantity. This minimizes the risk of stock-outs and delivery delays, which is especially crucial in times of increasing e-commerce demand and short delivery windows.
With the just-in-case strategy and a high OTIF rate, it ensures that companies can optimize their logistics processes while maximizing customer satisfaction. Digital warehouse management enables efficient and error-free logistics that meet both the requirements of the modern market and the expectations of customers.
TGW Logistics offers comprehensive solutions that combine the advantages of JIC inventory management and OTIF. Our wide range of leading bearing technologies has been appreciated by our customers for many decades and is particularly suitable for a wide range of product sizes. If you need help optimizing your inventory management, get in touch. With our tailor-made logistics solutions, we design your warehouse processes efficiently and reliably.
