JIT purchasing: the implementation and its conflict of interests

Wiyono, Yudi (2005) JIT purchasing: the implementation and its conflict of interests. Bachelor thesis, Petra Christian University.

Abstract

Just in time strategy is a very useful tool when company is trying to create efficiency. The strategy is about planning in the usage of resources that the company has in order to gain flexibility. The implementation is rather complex since involving many participants in the process, such as purchasing department, marketing department, production department, accounting department and other departments also suppliers. The complexity of the implementation is when the participants cannot support one another. The reason for this thing to happen is the conflict of interests that each participants have. These conflicts of interests happen because each participant has different goals in their working system. One of the examples is the conflict between purchasing department and the accounting department. Purchasing department has the role in monitoring the JIT purchasing process. Its commitment to the company is to prepare the raw materials on time meanwhile its commitment to the supplier is to pay the raw materials on time. When the accounting department does not pay to the suppliers due to certain reason, the purchasing department could not hold its commitment. This will result in the distrust by the suppliers and the suppliers would delay the next delivery. To find out which process that has to be the focus of each participants in order the JIT work, the author used survey that distributed directly to the participants, which then evaluated by frequency method as one of the descriptive analysis. By knowing this factor, all participants have to accept and behave accordingly or support the system. The first factor that becomes the priority has to be supported.

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