Closer Supplier Ties
As JIT systems operate at low inventory levels, JIT firms require a high level of cooperation from their suppliers. Suppliers should be able to provide timely delivery of inventory meeting the required levels of quality. Therefore, the supplier should be active and reliable, as the system requires frequent shipments of inventory. Against this backdrop, firms generally choose those suppliers who are located close to the plant. Firms also maintain long-term relationships with their suppliers to ensure smooth and continuous production.
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