Barilla

Just in Time Distribution was a buzzword to solve all the worlds transportation and distribution problems and lets look at how it is working now? In theory it makes sense to have Just in Time and with Fed Ex and other super streamlined systems it works fairly well when everything it working. Currently those companies who wish to guarantee next day service simply put their manufacturing facilities next to a Fed Ex regional hub or in Memphis itself or perhaps at one of UPS many mini-hubs or in Louisville, KY.

But wait what happens when there are severe weather issues and you need you part yesterday and the flights cannot be made and your P1 (priority 1 freight) ends up on a P2 or P3 timetable? So much for the World on Time in this just-in-time theory world. Of course you are saying that is not the norm, usually things can be there the next day.

Yes, usually and yet as many companies attempted to streamline their distribution systems, inventory warehouses and cut costs, there were fewer centers in which to send the stuff from. Yes, the computer shows a part on the computer in Milwaukee, WI and one in Orlando, FL. But they are having celebration riots in Miami due to the death of Castro and they are iced in Wisconsin. Meanwhile you need the part in San Antonio, but there is a Hurricane coming ashore in Galveston again.

Meanwhile once the traffic and crowds are gone, they learn in Miami distribution center that the RFID tag reader made a mistake it is not there. So you wait for the ice to clear from Milwaukee and it will be on the plane Friday on its way. Oh, but the place is closed on Saturday and you they can install it on Monday. Monday comes and it is the wrong part. But the good news is we found the part we need in Los Angeles and one in Tokyo too? Piece of cake; Tuesday rolls past and it is Wednesday and they are busy, but can get you out first thing on Thursday.

On Thursday the part is in, but then they discover another problem and order that part by 4 PM and it will be shipped out from Raliegh Durham NC. Everything works great with the Just in Time theory this time and you have your part by Friday and they actually almost finished fixing it all by Friday night, not quite you can have your Luxury Sports Car back on Monday. Moral of the story; Just in Time is not all it is cracked up to be in real life. Consider all this in 2006.