Astute inventory management of building material, tools, and equipment is a critical success factor for any large or medium construction project. A project costs can escalate wildly if inventory of expensive is managed efficiently. Electric Way has devised and optimized the Japanese concept of JIT – Just In Time inventory management to help construction companies gain multiple benefits.
Just-in-Time was invented by the automakers of Japan to ensure that assembly lines were running smoothly without interruption. By ensuring the timely availability of components, sub-assembles, accessories, and parts at different stages of the production cycle, the automaker firms were able to reduce the production time for making automobiles. The timely availability ensured that inventory was kept to the minimum not just on the shop-floor but also in the stores throughout the supply chain.
To run an efficient JIT it required all the players in the supply chain to be tuned to the production schedules. Each partner had to maintain the right inventory in the right quantity within the lead time for transportation and quality control. Everyone had to get aligned and stay committed to making it work.
Electric Way JIT for construction company is a collaborative effort between the customer and our sales and stores team to ensure that material is available when required at the site. By aligning with the construction schedule and engineering plans our team can forecast the requirements and work backwards with our suppliers to ensure stock is available in our stores and the customer site.
Just-in-time has multiple benefits for construction companies as it helps to reduce the overall cost by controlling multiple issues related to overstocking at site.
– Loss due to pilferage is kept very low as just the adequate quantities are at site.
– Loss due to erosion/damage is also kept under control.
– Lesser storage space is required due to the lower stock.
– Lesser stock on site or in store, also means the inventory carrying costs are lower.
A very reputed developer and construction group has benefited from Electric Way JIT program for many of their high-rise apartment construction projects. Our team worked closely with the procurement department, engineering department, and contracting company to orchestrate the movement of material through our JIT concept.
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