What is just-in-time inventory?
Just-in-time retailing is a system that forecasts demand and keeps just enough inventory on hand to cover that demand, which cuts down on excess and increases cash on hand and as part of Rex Brown's holistic approach to our partners is a key pillar in all of our strategies.
The system was designed by Toyota and applied to its car manufacturing process. Instead of forecasting the number of customers walking through its doors, Toyota predicted the number of cars it needed to produce within a certain time frame.
Rex Brown’s real focus is efficiency. Instead of ordering excess products, we ensure that just the right amount of products are available to get through a sales period, reducing the amount of “buffer” products. Unused buffer are, ultimately, wasteful, uneconomical and costly.
In the retail sphere, just-in-time retailing is also used to reduce buffer products. By forecasting as accurately as possible, you can minimise the amount of inventory that will go unsold or require discounting in order to sell and this is something here at Rex Brown that we are experts in and one of the ways where we can help support your eCommerce journey to ensure increased profitability, efficiency and reduce transportation, supporting our company wide eco friendly ethos.
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