The best example of a daily logistics is your home, yes, your home, more concretely your pantry.

The pantry of our houses is as a warehouse in the factories. We have two kinds of products stored, perishable and non-perishable. All the foods and drinks are consumed as a FIFO (First In First Out) System, because this kind of products have sell-by-date. But in the case of toilet paper it doesn’t matter the system we use because de durability of this type of products is greater.

On the occasion of the economic crisis the consumer behavior has changed. Consumers buy more frequently and, consequently, store less quantity and throw away less food. That is, they rationalize purchases and the quantities of food they cook.

This trend coincides with a technique “Just in Time” or zero stock. This technique consists in that companies tend to have the minimum warehouse in order not to incur fixed costs and adjust their orders according to their sales forecast, transferring stock management to their suppliers. These in turn will do the same with their suppliers and so on.

Currently we only buy what is going to be consumed. The objective is to maximize the budget, limit the losses and store when the product has long duration and very attractive prices.

Below you can see an interesting video explaining how Toyota apply Just-In-Time concept:

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s