The manufacturing JIT model may not work in a grocery environment...
Precisely! You cannot control the demand frequency and it can (and often does) have a much shorter wave length than supply chain response. No buffer (freezer and storage) means gaps. Of course the management dolts don’t understand the cost of empty shelves both on current and future lost revenue.
Ha! "Just in Time" doesn't even work in a manufacturing environment (Just in Time to be late).
The manufacturing JIT model may not work in a grocery environment...
My neighbor is a mid level manager at Jewel, a large Midwest grocery chain, and we have talked about how their distribution model works. Each store in the Chicago area receives from 6-10 deliveries per day, nearly every day.
If those trucks should stop for some reason the shelves would largely be bare in less than 36 hours.
Think about that for a minute.
L
Actually in theory it makes a good deal of sense.
They could’ve sold this as “we’re being more healthy for you - fresh!” because it’s off the truck rather than another stage of sitting around in storage.
But they were honest.
Problem is, they BETTER have trucks at the beck & call as soon as anything runs out. They need a system to handle it. Looks like they are not.
The manufacturing JIT model may not work in a grocery environment...