Advising Businesses On Just In Time Vs Just In Case: Dr. Tony Aitchison Of Paradelta Strategy
- S2E13
- 18:20
- April 6th 2023
Dr Tony Aitchison joined Ron Fiedler from Podcast City Radio to discuss business advisory.
He is a business growth strategist from Paradelta Strategy and offers advice to help businesses reach their full potential.
The conversation focused on the differences between just in time and just in case.
Just in time is when businesses provide products or services when they are requested, while just in case is when businesses keep a stock of products or services in anticipation of the customer's needs.
In order to be successful, businesses should be able to recognize which approach is best for their needs. Dr Tony provides guidance for businesses to make this decision. Just in case and Just in time are two distinct inventory management strategies.
Just in case is a traditional model that involves buying more than what is needed in anticipation of a certain demand.
This can lead to overstocking and excess inventory which may need to be offloaded at the end of the selling period.
Just in Time is a newer model which involves predicting the demand and buying only what is needed.
This helps reduce inventory costs and improve cash flow. The pros and cons of Just in case include overstocking and the need to offload extra inventory, whereas Just in time offers cost savings and better cash flow.
The conversation discussed the differences between just-in-time (JIT) and just-in-case (JIC) inventory management. JIT is when goods are bought and sold as needed, whereas JIC involves having goods stored in a warehouse for a longer period of time. JIT is beneficial because it saves money on warehouse costs, while JIC is better for businesses that have expensive goods or goods that have a high lead time.
Ultimately, which model is better depends on the business, the product, and the supply chain.
Ron and Tony discusses the pros and cons of two inventory management strategies,
It is suggested that JIT is better for larger companies that have a lot of warehouse space and own it, as it does not incur extra expenses. JIT is best for companies that have products with a short period of high demand and can be predicted, as it reduces the amount of excess inventory. It is noted that companies that use JIC to assist their supply chain may experience a decrease in their financial situation if the company they are working with shifts to JIT.
Finally, it is suggested that newer companies may be better off using JIC, as they do not have enough data to predict precisely with JIT.
05-04-2023
Dr Tony Aitchison Paradelta Strategy Podcast City Radio
Dr Tony Aitchison (MBA) has travelled the world and worked in France, USA, and Australia. Providing business strategy advice, brand equity building services, and new venture development and management to his clients, and within his own ventures.
This has seen him develop a cure for cataract blindness, develop renewable energy sources, develop rechargeable batteries that work as low as -60C, and has accelerated the growth of many businesses.
A strategist and implementer, he leads a team of experienced consultants and has worked in industries such as FMCG, pharmaceuticals, cosmetics, food, financial, chemical, plastics, finance, beverages, wholesale, energy, retail, med tech, not-for-profits, automotive, toys, festivals, technology, allied health, software, insurance, education, law, virtual reality and more.
This global and diverse range of experience provides a dynamic approach to his work that creates unparalleled growth for his clients.