Answered Essay: In JIT partnerships, suppliers have several concerns. These concerns are:

In JIT partnerships, the focus of management is to reduce waste and increase quality and efficiency of the company. For a JIT partnership to exist, there must be a supplier and a buyer who take up the agreement to work together to reduce waste and cut down costs.

Main four goals of a JIT partnership are

1. Removal of in plant inventory

2. Eliminate unnecessary activities

3. Eliminating the need of inplant inventory

4. Enhance quality and efficiency.

These are suppliers concerns because of the JIT philosophy. (see step by step below)

1. There is a need for diversification because if the supplier sticks to only one buyer, he will not be able expand and the costs will result in losses.

2. Another concern for buyer is poor customer scheduling. Since the scheduling helps in creating supplies and there is no inventory keep as per JIT philosophy, smooth scheduling is a big concern for buyer as they have to work as per this schedule which is never smooth.

3. Customers infrequent engineering changes are a concern to suppliers because they are the ones who need to make these changes in the products in time.

4. Small lot sizes prove to be very costly for suppliers because of the transfer costs. And any increase in the cost is a concern to supplier.

5. Suppliers are expected to produce at a given quality standard or above that, but them being limited by budgets, technology and processes poses tla great concern to them.

Yes, the most common of them being related to small lot-sizes. Since the storing of small lots results in more or addition to the costs of the product, it is a great concern. The suppliers deploy various methods to maintain storage of small lots at as lower costs as possible.