How Just-In-Time Logistics Affects the Collective Power of Workers?

For an organization to forecast demand accurately, Just-in-time (JIT) is an advisable method to be used. In that regard, Just-in-time is an inventory strategy which businesses employ to decrease waste and increase efficiency by receiving products only at the required time in the production process hence minimizing the inventory costs. In such terms, this inventory supply system replaced the previous just-In-case strategy where producers had to carry large inventories to curb any demand rise (Rivera, Sheffi, and Knoppen, 2016, pp.285-294). In that regard, Just-in-time strategy has been known as an effective and efficient method to be employed in any manufacturing company as it makes materials to be available at its required time. In that case, it affects the collective power of workers because materials are made available at is required time hence workers are rendered to be jobless. Therefore, this topic will entirely cover a critical evaluation on how Just-in-time logistics have affected the workers collective powers.

Unlike the traditional models, Just-in-time inventory control has numerous advantages such as the Production runs is short in a manner that it is for manufacturers to move from one product to another. In that regard, Just-in-time method assists in eliminating the needs of the warehouse storage, and as a result, it reduces costs (Rainnie, Herod, and McGrath-Champ, 2013, pp.177-195). Due to that enterprises end up spending less money on raw materials as they buy the exact amount not more to make a product hence the collective power of workers is no longer needed. For instance, currently, inventory management has been a continuous challenge to many businesses, due to the availability of a great deal to do with the production process of organizations, and substantial costs of inventory holding. In the continuous flow processes manufacturing industry, Just-in-time implementation is a vital strategy that minimizes the defect rates and that reach capacity utilization (Rossiter, 2014, p.53). Therefore, the top management is urged to commit themselves in incorporating the necessary changes that are required to take place in an industry to facilitate the implementation of a Just-in-time strategy which will ensure that there are effectiveness and efficiency in industry.

In that connection, in the current economic crunch organizations are looking for the ways of coping with the situation by opting for quality products and cost reduction (Hofmann, and Rusch, 2017, pp.23-34). Due to that, Just-in-time strategy has been known as a popular way of producing high-quality products and lowering costs. Thus Just-in-time strategy is regarded as an operations concept which ensures that the demand is met by making zero wastes and offering the perfect quality. By using Just-in-time strategy in a manufacturing industry, it helps to minimize the amount of the finished goods, raw material, and work-in-process inventory (Kirwan, 2014, pp. 299-308). Just-in-time assists in combining different functional areas of an organization especially in production and accounting areas. The strategy also tries to promote organizational discipline and managerial involvement. Moreover, the implementation of Just-in-time has led to the reduction in the purchase cost which was a major expense for most businesses. It increases communication for both outsides and inside the company and with other organizations such as distributors and vendors, and it promotes organizational effectiveness and efficiency. Thus, all those advantages of just in time are contributing towards lowering the product and costs of production, hence weakening the collective power of workers in an Organization. Therefore, it is upon the top management to take their responsibility to ensure that the strategy Just-in-time is implemented in their organization for the best of their success.

Reference List

Hofmann, E. and Rusch, M., 2017. Industry 4.0 and the current status as well as future prospects on logistics. Computers in Industry, 89, pp.23-34.

Kirwan, C.G., 2014, June. Smart Asia: A New Platform for Collective Intelligence. In International Conference on Cross-Cultural Design (pp. 299-308). Springer International Publishing.

Rainnie, A., Herod, A. and McGrath-Champ, S., 2013. Global production networks, labor, and small firms. Capital & Class, 37(2), pp.177-195.

Rivera, L., Sheffi, Y. and Knoppen, D., 2016. Logistics clusters: The impact of further agglomeration, training, and firm size on collaboration and value-added services. International Journal of Production Economics, 179, pp.285-294.

Rossiter, N., 2014. Logistical worlds. Cultural Studies Review, 20(1), p.53.