Just-in-time manufacturing and external logistics: Evidence from American parts suppliers.

Abstract

Much has been written on the impact of JIT shop floor practices on plant performance inside the plant without considering how what happens in the plant relates to external logistics factors. In the meantime, the transportation research community focuses on the distribution issues mainly between the trucking firms and auto manufacturers. Little research has been conducted on the linkage between internal JIT manufacturing practices and external logistics practices. This study, based on a survey of over 100 U.S. major first-tier automotive parts suppliers, investigates the relationship between internal manufacturing practices and external logistics system in the auto parts industry. The findings indicate that internal lean manufacturing practices can facilitate Just-in-Time logistics. In addition, our data also show that customer policies and practices differ between U.S. automakers and Japanese transplants in the U.S. and these differences impact the JIT practices of their suppliers. Important factors contributing to successful shipment of quality parts in a JIT environment are identified through regression analysis.