JIT EDI Management (Just in Time) – Continental Production Flow
JIT EDI Management is a driven sourcing model with a limited inventory coverage range and high frequency deliveries (at least three times per week) relying on pull signals (e.g. Kanban) between different points (e.g. warehouse or production line). It means synchronization of delivery and production in order to optimize logistics costs and inventories. The concept of synchronized supply aims to reduce the stocks in the supply chain up to the quantity necessary for the supply of Continental production. A zero-error supply chain process is of the essence for JIT.
The Supplier receives in addition to a Delivery Schedule a call-off from the ordering Continental plant, if required or applicable. Call-off shall mean schedule lines within a limited period of time as a result of pull process. The call-off replaces information in the Delivery Schedule / Forecast Information for the limited period of time. The call-off is decisive for delivery and takes precedence over the Delivery Schedule and the Supplier should use the Delivery Schedule to plan its production accordingly. The mode of communication of the call-off (e.g. EDI, WEB EDI, E-Kanban, mail) can vary and is agreed between the Parties during the set-up of the concept.
It is the Supplier’s responsibility to arrange own logistics processes in order to ensure supply and delivery of Contract Products. The following section should help Supplier to arrange its planning processes accordingly, as it describes processes and communications (exchange of information) between Continental and Supplier concerning material planning and monitoring deliveries. This includes frequently used designations, techniques, and activities, which Continental expects from Supplier.