Mar 28, 2023

Today’s globalized markets have made one thing certain: Change can happen at any moment. The past years have been a prime illustration of this phenomenon as supply chains have dealt with new compliance requirements, increasing fuel costs, shipping tariffs, the e-commerce boom, and persistent labor shortages across multiple industries. Studies show that 7 in 10 employees do not feel fully prepared for the future of work since businesses are constantly navigating through numerous external and internal pressures.

Across the supply chain, around 58% of businesses have reported an increase in fulfillment volume. At the same time, 73% of employers report difficulty in attracting and retaining employees, creating fulfillment challenges for warehouses seeking to stay ahead of consumer expectations. In response to surprise demands and shortages, distribution centers must optimize inventory tracking systems to prevent sudden stockouts and/or overstocking. Consequently, many businesses have found themselves choosing between Just-in-Time (JIT) and Just-in-Case (JIC) inventory management. Both models provide advantages that keep operations prepared for sudden changes; however, they also enable possible pitfalls in the face of change. As warehouses continue to modernize technologies, it is crucial to understand handling options to find an automation solution that accommodates unique workflows.

JIT versus JIC: Which One Should You Pick?

While both systems have unique specifications, both aim at expanding inventory control by giving warehouses more flexibility with a smaller team.

• What is JIT Inventory Management?

Warehouses operating within a JIT model do not hold reserve stock. Instead, they order precise amounts of materials needed for orders, minimizing storage expenses, and ensuring flexibility. This method trims unnecessary operational costs, reallocating budgets to other more pressing matters. Furthermore, for businesses handling perishable items, JIT proves beneficial in preventing expired products from progressing through the supply chain and causing recalls.

On the other hand, JIT systems are vulnerable when sudden changes such as extreme weather, natural disasters, and shortages happen before replenishment. Businesses dealing with multiple manufacturers and distributors risk prolonged stockouts if they don’t hold reserve stock.

• What is JIC Inventory Management?

Unlike JIT, warehouses leveraging JIC inventory management will stock reserve products to proactively prepare for possible shortages and spikes in demand. By analyzing former purchase patterns, warehouses can accurately estimate needed stock before transactions are completed. This model augments flexibility as warehouses can operate with multiple manufacturers and distributors without worrying about sudden shortages since they have a reserve.

On the flip side, JIC handling can be more costly due to acquisition and storage expenses. Moreover, in the event demand dips unexpectedly, warehouses may find themselves with surplus stock at a depreciated value.

Although both methods can be highly beneficial for different scenarios, JIC management has gained much traction as distributors and retailers attempt to overcome shortages before they happen. However, without the right systems, poorly managed JIC inventory can result in:

• Overstocking
• High storage costs
• Inventory misplacements
• Product spoilage

Fortunately, modernized automation simplifies data capture to expand inventory visibility across the supply chain, giving teams greater control over replenishment and storage.

Maximizing Visibility with Future-Forward Mobile Computers

Technology leaders estimate that over 70% of warehouse decision-makers intend to empower teams with partial automation. Replacing error-prone manual tracking, automated computing expands inventory control by giving you real-time stock counts and location. This ultimately facilitates cross-docking and order picking since teams know where products are located. Before integrating a mobile computer, be sure to prioritize the following features in your solution:

• Durability Standards - Consumer-grade devices fare poorly in enterprise spaces due to their delicate frame. On the other hand, enterprise-ready mobile computers equipped with durability boots and military-standard casings can survive in several extreme conditions such as the low temperatures associated with cold storage, condensation from sudden temperature changes, and drops in air pressure from high altitudes. High drop specs and tumble counts also help prevent breakdowns during accidents.
• Connectivity – Devices sporting limited connectivity options may leave teams disconnected from real-time inventory counts. While it may be difficult to find a device that supports every type of connectivity imaginable, consider looking for the most common networking tools such as WiFi, Cellular, Bluetooth, and 5G. Because warehouses often have thick walls and metal racks, flexible connectivity options can also mitigate dropped sessions as your teams navigate through dead zones.
• Integrated Productivity Tools – Mobile computers bring another vital benefit to warehouses: tool consolidation. Successful JIC inventory management will hinge on data capture and team communication to effectively store and locate inventory. Advanced mobile computers streamline these tasks by integrating intelligent scanning and push-to-talk connectivity, virtually eliminating the need for additional devices within the warehouse and the costs needed to maintain them. Consolidated tools also decrease training times, allowing warehouses to speed up onboarding in smaller teams.
• Scalable Functionality – No one wants to invest in a solution that will become obsolete in three years. Consequently, modernization experts recommend choosing systems with planned longevity. For example, Android for Enterprise currently projects support for up to ten years, maximizing the longevity of your Android handheld devices.

Although mobile computers are foundational to an automation solution, they are not the only essential part required for dependable efficiency. As a matter of fact, many decision-makers still feel hesitant to deploy future-forward technologies despite their proven track record. In addition to reliable technology, modernizing supply chains must also integrate the following support strategies to ensure continuous efficiency:

• An adaptable connectivity infrastructure – As previously noted, connectivity plays a large role in device performance. While a mobile computer may be equipped with flexible connectivity options, it is also recommended that you assess your network to ensure it can accommodate more devices without dropped signals, slowed connections, and interference.
• Seamless inventory identification – Whether you choose JIT or JIC, effective inventory management depends on reliable data accuracy. Durable enterprise labels deliver crisp barcodes for easy scans that translate data straight to your WMS for real-time, accurate visibility. By combining your mobile computer with quality printing supplies and an intelligent WMS, teams can quickly scan, update, and verify inventory from anywhere in the warehouse.
• A pre-established cybersecurity plan – While adding more digital devices can improve data visibility, it also opens room for cyberattacks. Therefore, your teams should outline a proactive cybersecurity plan to prevent inappropriate device usage, data leaks, and cyberattacks.
• Dependable system support – Lastly, to smoothen integration and future scalability, consider implementing a support system that enables on-site training, mobile device management, assisted configuration, and repair management. When working with a specialized support team, distribution centers can accurately assess workflows that need more device availability while support teams configure and streamline new devices and solutions for less downtime.

Though it may be hard to predict the state of modern supply chains within the next five years, one fact is sure: changes are likely to keep reshaping consumer expectations and mainstream workflows. Although JIT and JIC currently dominate most inventory management practices, novel technologies such as artificial intelligence and digital twins may yet play a role in revolutionizing the modern warehouse. To proactively stay ahead of change, specialists recommend partnering with solution developers to preserve agile scalability within your systems. For more information on today’s leading supply chain challenges, contact us here.