International Logistics Essay Example | Topics and Well Written Essays - 2000 words - 2

International Logistics - Essay Example Most of the organizations were always maintained a good inventory of raw materials in order to sustain the production in case of a shortage of raw materials in between. Organizations were taken such precautionary measures because of their limited access to domestic and international sources of raw materials. But now globalization has opened the doors widely open for both domestic and international business and hence the access of raw material sources is not at all a problem now. Moreover the advancements in computers and internet technologies have made the task easy for organizations to despatch and procure goods in time. For the last ten years or so, the freight transportation industry has been facing new challenges such as time sensitive industrial and commercial practices as well as the globalization of markets. In response to these changes, new information related technologies have developed rapidly. (Roy, 2001)Just-In-Time procurement practices are one of the latest developments in international logistics. â€Å"Just-in-time (JIT) is defined as â€Å"a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity†.   It also has been described as an approach with the objective of producing the right part in the right place at the right time (in other words, â€Å"just in time†).† (JUST-IN-TIME (JIT) PRODUCTION, 2006)   This paper briefly analyzes various aspects of Just-In-Time procurement practices. Freight transportation industry had faced new challenges in the last decade which affected the supply chains and logistic processes. â€Å"The first change may be attributed to the impetus towards inventory reduction which led to Just-In-Time procurement practices.† (Roy, 2001) Just-In-Time (JIT) Procurement System designed to put general purpose materials at the work places only at the time when they are actually needed. Advance procurement