Just-in-Time to Just-in-Case By Charla Griffy-Brown, Ph.d.
Developing better ways of dealing with supply chain disruptions is particularly important since sustainable competitive advantage is often driven by speed, delivery and cost-reduction. Whether intentional or due to natural catastrophe, these disruptions for businesses usually go straight to the bottom line.
What makes disasters and the resulting business disruptions particularly significant today is the emphasis on speed and efficiency. This is generally epitomized in the Just-in-Time system of delivery of materials and components that was pioneered by Japanese manufacturing firms. This technique requires inventory to arrive at the production lines precisely when it is needed. In the 1980s, a few U.S. manufacturing firms took their cue from their Japanese competitors and began to cut the slack and related waste out of their own supply-chain networks. As a result, Just-in-Time concepts have now been widely adopted across both traditional and high-tech industries in the United States and Europe . The inventories of both raw materials and finished goods have been dramatically reduced for these organizations, thus making capital available for more profitable uses.
