Using a just-in-time selling strategy to strengthen supply chain linkages

Abstract

A two-stage JIT-selling strategy is proposed as an alternative for strengthening buyer–seller linkages throughout the supply chain. The impact of implementation of such a strategy on organizational performance is investigated. Stage 1 of the JIT-selling strategy requires implementation and execution of selling tactics that build value during the selling process based on the organization's JIT related capabilities, such as zero-defect production, on-time delivery and quantity precision. Stage 2 requires development of single-source relationships with customers that result in the full integration of on-site sales representatives into customers’ purchasing processes. Data related to implementation of the JIT-selling strategy and organizational performance were collected from 175 manufacturers, and the relationship between the constructs was assessed using correlation and structural equation modelling techniques. Results support the proposition that implementation of a JIT-selling strategy to strengthen supply chain linkages will result in improved organizational performance.

Keywords:

• Supply chain management
• JIT-selling
• Organizational performance
• Structural equation modelling