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Essay text:
But Kanthal didn't do that. They don't believe in ABC?
Customer #199 implemented JIT and they've got substantial improvement in productivity and efficiency. With JIT concept they place order to Kanthal in small quantity and frequent orders. According to ABC, this makes the cost for Order-to-cash activities at Kanthal is quite high, so that it eats the margin.
The funny thing, the book said JIT is appropriate in Japan, not in Sweden. Don't they look at automotive industry around the world that successfully implement JIT?
So what's the solution described in the book? The solution is to cut the cost of order-to-cash activities by using electronic B2B concept...
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