What does "just-in-sequence" mean?
The term "Just in Sequence" (JIS) describes a delivery method used in procurement logistics. The JIS process is an evolution of Just-in-Time (JIT) delivery. The necessary materials for production are delivered in the exact quantities and types required, and in the correct sequence, at the precise moment they are needed for manufacturing.
The Process
To ensure smooth Just-in-Sequence procurement, determine demand, and minimize the burden on the supply chain, electronic data interchange (EDI systems) and communication between customers and suppliers are essential. A typical application is the automotive industry. Automakers have perfected this method of delivery.
The parts are delivered to the assembly line at the right time and in the correct sequence and position. There, the final assembly of the components onto the prepared structure takes place immediately.
Just-in-sequence production is based on the production cycle. This form of procurement logistics is only possible through excellent transportation planning. The goal of transportation planning is to minimize inventory and transportation costs. Key elements include determining the optimal quantity and calculating the correct delivery time to ensure that continuous production is not interrupted.
Benefits of Procurement Logistics – Just-in-Sequence
- no inventory costs for the recipient
- no inventory at the recipient's location
- Delivery of the modules to the assembly line
- minimal space requirements during installation
- Variants synchronized with production for final assembly
Disadvantages of Procurement Logistics – Just-in-Sequence
- significant communication effort between the customer and the supplier
- high dependence on the supplier
- In the event of complications, there is a risk of production stoppages
Conclusion
When implemented consistently, the benefits for companies outweigh the drawbacks. The process minimizes tied-up capital, virtually eliminates the need for inventory, and ensures that goods are delivered at the right time to supply the vehicles in the production line with the correct modules. No notification is issued in this process.