What is JIT II?
Just-In-Time has revamped its processes and produced JIT II. JIT II places more responsibility with the suppliers for functions such as: forecasting usage; ordering replenishments; and billing the organization. JIT II systems are frequently implemented in client/server environments, where multiple servers have access to a database utilizing Structured Query Language (SQL). The authors assert that JIT II provides the potential to reduce inventories, eliminate redundant purchasing agents and get cost-saving tips from having suppliers familiar with their business. The retailing industry denotes this as ECR, efficient consumer response. Risks The JIT II system is inherently risky because it relies heavily on the supplier: Cost savings may not be realized if suppliers do not synchronize their deliveries with demand. Suppliers may attempt to serve more customers than they can accommodate. Suppliers may fail to make needed improvements. It can be difficult to sever a relationship that no long
