Just-in-time Ordering Versus Warehousing Materials: Which is Best for Material Coordination?

RCS Influencer John Kenney compares the benefits of the different approaches to coordinating materials: just-in-time ordering and warehousing materials

Just-in-time ordering and warehousing materials are two different approaches to managing a roofing contractor's supply chain. Just-in-time ordering is the practice of purchasing materials and supplies only when needed for a project. Warehousing involves storing materials and supplies in a central location for future use. Both approaches have advantages and disadvantages; roofing contractors must balance them to optimize their supply chain management. We will explore how contractors can balance just-in-time ordering with warehousing their own materials and what best practices they can adopt for the changing economy. 

Benefits of just-in-time ordering 

Just-in-time ordering has several advantages for roofing contractors. It can help them reduce inventory costs by only ordering what is needed for a project. This approach can also help roofing contractors avoid the risk of overstocking materials that may become obsolete or damaged over time. Additionally, just-in-time ordering can help optimize their supply chain management by reducing lead times, transportation costs and storage costs. 

Benefits of warehousing 

Warehousing materials and supplies can also have advantages for roofing contractors. By warehousing materials, roofing contractors can access them when needed, reducing the risk of delays or disruptions. Warehousing can also help roofing contractors take advantage of bulk purchasing discounts, reducing material costs. Additionally, warehousing can help contractors manage their cash flow by spreading out their expenses over time. 

Balancing just-in-time ordering with warehousing 

To balance just-in-time ordering with warehousing, roofing contractors must adopt a hybrid approach that combines the benefits of both methods. This involves identifying the materials and supplies most critical to a project and the most significant risk of supply chain disruption. These materials can be warehoused in a central location to ensure they are available when needed. 

Just-in-time ordering can be used for materials and supplies that are less critical or have a lower risk of supply chain disruption. Roofing contractors should work closely with their suppliers to ensure that orders are placed with enough lead time to deliver on time. Additionally, roofing contractors should consider working with multiple suppliers to reduce their reliance on one supplier. 

Best practices for the changing economy 

The changing economy has brought new challenges and opportunities for roofing contractors. To optimize their supply chain management, roofing contractors must adopt best practices relevant to the changing economy. These include: 

• Use technology to improve your supply chain management, including online ordering systems, automated inventory management and real-time shipment tracking. 
• Building solid relationships with suppliers is essential for success in the changing economy. You should take the time to get to know your suppliers, understand their business operations and communicate your needs effectively. 
• Employee training can help your company improve its supply chain management. This includes training employees on new technologies, supply chain management best practices and communication skills. 
• Planning is critical for success in the changing economy. Roofing contractors should develop a comprehensive supply chain management plan that considers potential disruptions and identifies backup suppliers and materials. 

Balancing just-in-time ordering with warehousing is essential for optimizing a roofing contractor's supply chain management. Roofing contractors should identify critical warehoused materials and use just-in-time ordering for less critical materials. To maximize their supply chain management in the changing economy, contractors should embrace technology, build strong relationships, invest in training and plan ahead. By adopting these best practices, roofing contractors can improve their supply chain management and position themselves for long-term success.