Procurement logistics – Just in sequence
“Just in sequence” refers to a type of delivery in which the required goods are delivered to the right place at the right time, in the right quantity and of the right kind and processed immediately. The decisive difference to “just-in-time” procurement logistics is that the supplier must pay attention to the correct packaging sequence in which the customer finally receives the goods.
Electronic data exchange between buyer and supplier is indispensable to ensure smooth procurement in accordance with just-in-sequence. A typical field of application is the automotive industry. Different variants of modules, such as two thousand olive-green and one thousand grass-green car doors, including attached handles and inserted windows, are delivered to the assembly line both at the right time and in the correct sequence and position, and can be attached to the existing construction and passed on.
In consequence, the production cycle gives orientation to just-in-sequence production. This form of procurement logistics is made possible by proper transport planning. Transport planning has the task of keeping transport and inventory costs as low as possible. A reduction of these costs can be achieved by determining the optimal delivery size and calculating the correct cycle lengths.
Advantages of procurement logistics – Just in sequence
- no stocks (transfer of ownership through installation)
- Module delivery / high parts integration
- Reduction of complexity – production
- Low handling requirements during assembly
- Low space requirement during assembly (per workstation)
- Realization of a great variety of variants
- Decrease in inventory costs, no storage space required
Disadvantages of procurement logistics – Just in sequence
- The disadvantage of just-in-sequence procurement is, on the one hand, the increased communication effort. In the communication between customer and supplier, a constant exchange of protocols on the current production status is crucial. Otherwise, the delivery of incorrect parts can lead to cumbersome reworking.
- High technical dependencies
- On the other hand, natural influences such as snow, storm damage or the like endanger smooth production. Complications on the route, such as accidents or diversions, can lead to the supply not reaching production on time, which in turn can lead to a production stoppage.
Image source: Audi-Presse