Establishing a JIT Supply System Utilizing an On-Site Warehouse
Integrating procurement, distribution processing, and JIT delivery to enhance production efficiency.
Customer：Automobile Manufacturer
Challenge (Before)
The customer procured parts from numerous suppliers; however, variations in packaging specifications and lot sizes among suppliers created significant burdens in receiving operations and inventory management at the production line.
In addition, the customer lacked end-to-end visibility from procurement through line-side delivery, making it difficult to respond swiftly to unexpected supply delays.
To enable greater focus on production management, the customer required optimization of procurement logistics and the establishment of a resilient supply structure capable of sustaining production even in the event of unforeseen disruptions.
Solutions
NX Solution
- Established an on-site warehouse in close proximity to the production plant to serve as a strategic hub for procurement logistics.
- Implemented a milk run system to efficiently collect parts from multiple suppliers and transport them to the on-site warehouse.
- Conducted comprehensive value-added services at the warehouse, including inspection, quality checks, light assembly, kitting, and labeling.
- Standardized packaging configurations and conditions suitable for the production process, followed by Just-In-Time (JIT) delivery to the plant.
- Visualized the entire process—from procurement and distribution processing to line-side delivery—and enabled centralized management by the NX Group, ensuring seamless coordination with in-plant logistics.
Benefits
Benefits (Results)
By leveraging the on-site warehouse, NX established a JIT supply system capable of delivering “the right items, at the right time, in the right quantity” to the production line.
This enabled the customer to concentrate on core production management activities within a more streamlined operational environment.
Furthermore, by maintaining a certain level of parts and material inventory at the on-site warehouse, the system allowed temporary continuation of production even in the event of supply disruptions caused by natural disasters or other emergencies. This initiative also contributed to strengthening overall supply chain resilience.
