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Distributors feel similar pressure, both to increase inventory of items they already stocked and to add items they currently did not carry to their product offerings. Both manufacturers and retailers are suffering from thinning margins.
The JITD proposes to rather than send product to the distributors according to their internal planning processes, they should look at all of the distributors’ shipment data and send only what is needed at the stores. They will send no more and no less of what is needed. With the way they are currently operating, it is nearly impossible to anticipate demand swings, so they end up having to hold a lot of inventory and do a lot of scrambling in their manufacturing and distribution operations to meet distributors demand...
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