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* * * * * * * * * * * Premium Freight Makes JIT Fit Fast Reading II UP PREV. NEXT Just-in-time (JIT) manufacturing is a tremendous advantage – when everything works perfectly. But what happens when the supply chain falls out of sync -- when an overseas supplier has equipment problems, environmental factors delay deliveries, or defective parts are discovered on the assembly line? How do suppliers avoid chaos and keep JIT production rolling? UP PREV. NEXT One solution is premium freight -- last-minute rush shipments to bring in materials or components. Manufacturers generally view premium freight as a costly, but unavoidable, nuisance. But they see these shipments only as a large number of one-time events. Because its a given that premium freight will always be part of the manufacturing process, especially with the proliferation of JIT plants, companies should use the service strategically. UP PREV. NEXT Companies should employ advanced planning that makes premium freight an integral part of the production process. This ensures maintenance of the customers schedule and budget, and reduces the cost of expedited shipments. The entire process of ordering premium freight has been revolutionized, however, by the emergence of third-party logistics companies (3PLs). These companies are unbiased in their choice of carriers, using performance data to make their selections. UP PREV. NEXT One 3PL, for example, utilizes a contracted group of pre- qualified carriers, each with a numerical performance rating to ensure quality service. With this type of logistics management, multiple transportation modes are ready and waiting. Rates are pre- negotiated, and carriers respond within very short time windows. The big advantage of third-party logistics providers is that they use the web to notify a base of carriers quickly, receive immediate bids, and rapidly assign shipments. This gives carriers the ability to link electronically int
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