Companies both large and small find value in better matching their inventory with the company's actual needs. This approach—known as 'just in time' inventory—can save space, money, and effort by ensuring that inventory supplies arrive only when they are needed and waste is avoided. But it requires a strong logistics support system. Why? Here are a few reasons that you can't start without good logistics in place. 

1. You Need Backup Plans

If your business will keep no overflow of inventory as a backup plan, it must have other backup plans in place. For example, many manufacturers using 'just in time' (JIT) models have backup suppliers whom they call on when an original supplier can't meet a deadline. But you'll need to have transportation already lined up for these—and likely it must be able to handle a 'rush' job instead.

Backup plans are the specialty of large logistics companies. They have a vast network they can call on for services ranging from last-minute truckloads to warehousing at docks to navigating loads in areas with limited access. 

2. You Need a Variety of Transportation Choices

To meet the varying needs of the manufacturing or business cycle, the company must be able to tailor its shipping methods. Why?

Consider how your needs may change throughout the year. Periods of lower production might need 'less than truckload' transportation whereas the busy season could require full trucks or rail transportation. You may need to use many vendors of varying capacity or at various distances. Additionally, you might alternate faster but more expensive air freight with slower bulk shipping via ocean carriers.

Because a logistical service already has all these transportation choices within their network, you don't have to spend the time and money trying to figure out how to accommodate sudden changes or build a system that can keep up with your manufacturing cycles. 

3. You Need to Avoid Delays

Delays can be the death of a JIT inventory method. With little buffer, even a delay of a few days could stop production. But transportation often suffers delays, especially in a world where many parts now come across vast distances. Delays can happen from natural disasters, economic problems, customs issues, or suppliers' own supply chain challenges. 

Small businesses have a limited toolbox for resolving delays. There is likely little to nothing you can do to speed up a complex foreign customs procedure, for instance. But an international logistics company already knows how to navigate those systems and what it takes to get your goods through quickly. They can do a lot more for you than you could do yourself. 

Any company who wants to rein in costs with 'just in time' inventory must first build a solid transportation network. And the best place to do that is by finding an experienced logistics partner. Contact a logistics service for more information.