High inventory costs can pull any white good and automotive player out of the competition. Follow these smart factory solutions to refine your JIT delivery and curb your inventory costs surge.

The white goods and automotive industries cannot afford to thrive with outdated JIT (just-in-time) delivery systems. They need to invest in advanced manufacturing technologies to gain an edge over the competition. And this is where the concept of a smart factory comes into the picture. It boosts manufacturing efficiency and offers countless cost-combating opportunities.

The smart factory is a digitised system that collects and shares information through connected gadgets, devices, and production systems. White goods and automotive industries can use this data for digital transformation, self-optimisation, and streamlining performance. It also helps in addressing supply chain issues, refining manufacturing processes, and reciprocating to new demands.

Keep reading on as we outline:

• How JIT delivery helps in reducing inventory costs.
• What is the role of smart factory solutions in improving JIT strategies and reducing inventory costs?

 

What is achieved with just-in-time delivery (directly proportional to cost)?

The right JIT delivery strategies can help in reducing warehouse costs, working capital requirement, manufacturing costs, and wastage.

• Reduces warehouse costs: Storing excessive raw material in the warehouse can add up to your expenses significantly. Going for TPS-Toyota Production System or JIT delivery is a great way to avert this situation and shrink your warehouse and storage costs.
• Reduce working capital requirement: JIT is all about taking only essential inventory for the manufacturing processes. Moreover, the fresh stock arrives only when the minimum re-order level is hit. This process plays a vital role in reducing working capital requirements in the business.
• Decreases manufacturing costs: JIT is a demand-pull inventory system that helps in managing effective supply chains. It also lowers the manufacturing costs and product costs of the factories. The result is an enhanced market share, improved visibility, and high profitability.
• Minimise wastage: The market demand remains fickle and volatile in white goods and the automobile manufacturing sector. Stocking surplus inventory might result in excess expired and unsold items. Timely actionable insights with JIT will not only help in reducing wastage but also eliminates overproduction.
• Right-first-time concept: JIT is a lean manufacturing technique that emphasises the right-first-time concept. It helps in minimising the cost of inspection and rework cost to a great extent.

 

How have smart factory solutions helped in just in time delivery and reduced costs?

Smart factories use a collaborative and fully integrated manufacturing approach to make systems more optimisable, adaptable and flexible. It has played a vital role in improving JIT delivery and reducing costs. Let us dive into the details:

Industry 4.0

• Industry 4.0 is an advanced technology that manages and optimises several aspects of the supply chain and manufacturing processes.
• That’s not all. It also allows you to access real-time data and perceptions to make faster and smarter decisions.
• Industry 4.0 has done a great job in improving JIT delivery systems, reducing downtime, and lowering inventory costs.

Industrial internet of things

• The ability to track, connect, automate, and analyse is crucial for success in the white goods and automotive industry.
• IIoT is the best performance monitoring solution that allows companies to use real-time data to predict system failures.
• It is a boon for production lines where a single fault in the machine can hamper workflow and incur huge cost.
• IIoT addresses maintenance issues and offers excellent improvement in operational efficiency.
• It also helps in streamlining the end-to-end manufacturing process.

Cloud computing

• Cloud computing played a significant role in autonomous driving, connected cars, shared mobility, digital manufacturing, and deeper customer insights.
• It is a shop-floor digitisation technology that enables smart factories to accumulate, process, and share real-time data with greater flexibility.
• The best part about cloud computing is that it allows you to upload a massive amount of data. It also prevents data loss risk to a greater extent.

Sensors 

• Companies that want to experience the power of digitisation can go for smart sensors. It is a smart factory solution to improve your JIT delivery and reduce inventory costs.
• Smart sensors do an excellent job in data conversion and digital processing.
• Apart from processing, it can also transfer data to Cloud and other external devices.

 

Bottomline

So this was all about the shop factory and its role in improving just-in-time delivery and reducing inventory costs. Companies that aim to carve a niche in the industry should not miss a single opportunity to implement these solutions in their manufacturing systems.

Make sure you trust the best when it comes to introducing advanced manufacturing techniques into your business. ShopWorx is a leading name that is known to offer brilliant end-to-end smart factory solutions to its clients.

The highly efficient team of ShopWorx work towards introducing newer, faster, better, and cheaper technology on the manufacturing shop floor. So what are you waiting for? Connect today to discuss your requirements and utilise digital innovation to upgrade your supply chain efficiencies.