Understanding the use of just‐in‐time purchasing in a developing country

Abstract

Weak supplier bases and weak infrastructures pose significant obstacles to the use of just‐in‐time (JIT) purchasing in developing countries. Explores the use and effectiveness of JIT purchasing practices in one such developing country, Mexico, in an attempt to lay a foundation for understanding the use of JIT purchasing in developing countries in general. Analyses two distinct activities characteristic of JIT purchasing: JIT deliveries from suppliers and supplier involvement in improvement activities. Uses a large sample mail survey and comparative case studies. Indicates that both JIT deliveries and supplier involvement in improvement activities can enhance performance in Mexican operations under certain circumstances. Finds the effectiveness of pursuing JIT deliveries depends on plant and company size. Achieving high levels of supplier involvement appears to depend in part on the extent that Mexican managers have developed a network within the parent company. Provides recommendations for managers and suggestions for areas requiring further research.

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