The role of procurement - AQAJust-in-case (JIC) stock control
Procurement are responsible for the purchase and management of stock and supplies. Procurement have to decide which suppliers to use and hold a vital role in the supply chain.
Just-in-case (JIC) is a stock control method that involves producing or purchasing stock with excess, or buffer stockA minimum stock level a business holds at all times, to reduce the risk of running out of stock due to late deliveries. in place. This means that there is always stock available for the business if required.
JIC is very useful when there is a shortage of a certain product, or a sudden increase in demand for a particular product. For example, a business selling a cereal product may keep an additional 15 boxes more than they predict to sell each week. If there is a late delivery, or an issue with the manufacturing or the cereal, then they will be able to rely on the 15 excess products in stock.
Advantages of JIC
Increases the level of customer satisfaction
Reduce the chance of running out of stock
Benefit from bulk-buy discountA cheaper price offered to customers when they buy a large quantity of something.
Disadvantages of JIC
Buffer stock space requires more storage space at more cost to the business
Products kept in stock for a long period of time may lose their freshness
High amounts of cash tied up in stock
Increases the chances of having to sell off stock at a discount
