ngly popular among American manufacturing firms.
A variety of techniques are involved in the implementation of a JIT purchasing program. Ansari and Modarress indicate that there are two basic factors in implementing JIT purchasing. The first is the human factor, which involves preparing management, employees, and unions for working with the new system. The second factor in JIT implementation is that of carrying out the operational concerns. One such operational concern is deciding upon a reliable supplier. A key element in JIT purchasing is reducing the number of suppliers. Ideally, a manufacturing plant will have only one well-trusted supplier. Some managers have argued that multiple sourcing is better than settling on one sole source of supply. According to this perspective, having a number of suppliers is beneficial in case there is a shortage of a particular part. In addition, it is assumed that competition among suppliers will help keep material prices down. In actuality, however, single sourcing has more advantages than multiple sourcing, particularly in terms of implementing JIT purchasing techniques. Contrary to what some managers have claimed, single sourcing helps to lower costs because the "overall volume of items purchased from any one supplier is higher." In addition, it is unlikely that a manufacturer will have difficulty in obtaining needed parts from a sole supplier. This is because such suppliers generally give "special attention" to their buyers, who usually "represent large accounts."
The fact that reduction in the number of suppliers is a vital aspect of JIT purchasing can be seen in a survey conducted by the staff of Purchasing. According to that survey, manufacturers using JIT purchasing reduced their supplier base by an average of 37 percent. It may be noted that reducing the number of suppliers has benefits in terms of productivity because it causes suppliers and buyers to develop long-te...