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Just-in-Time Shipping

Just-in-Time Shipping - • Getting the products to the...

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Just-in-Time Shipping A Case Study By
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Globalization (Worldwide Statistics) Year Expenditures % GDP 1997 $5,095 Billion 13.4% 2002 $6,732 Billion 13.8% Change +32% +3% What is driving this activity?
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• In addition to supporting tighter delivery schedules, • How else are logistics service providers supporting their customers? • Logistics service providers are supporting their customers by… • Delivering products to customers at the most efficient methods possible • Limiting costs to the customer
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Unformatted text preview: • Getting the products to the customer as fast as possible • In your opinion, is this “good” for the long-term competitive position of the logistics providers? Why? • JIT reduces the costs of acquiring inventory to insignificant levels by – Drastically reducing setup time – Using long-term contracts for outside purchases • Carrying costs are reduced to insignificant levels by reducing inventories to insignificant levels....
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