Saving Your Household Money - Just in Time Shopping!

Post World War II, the Japanese pioneered the ‘Just-in-Time’ (JIT) manufacturing as a way to increase efficiency and effectiveness in manufacturing. 

“It saves the money tied up in downstream inventories, protecting against long lead times. Shorter lead times mean improved responsiveness and flexibility.”

(Karmarkar, 1989)

This lead to the rise and rise of some of the worlds most efficient companies - Toyota, Suzuki, ASIC, Global Knife company to name a few. 

With the global adoption of this methodology, the global consumer saw a massive decrease in the price they needed to pay for key items, and a worldwide efficiency quest began. 

As the cost of living in Australia spirals out of control, despite a recent temporary pause in the last couple of months, the Reserve Bank of Australia has previously implemented 12 interest rate hikes on the Australian economy.

“Food inflation was 9.1 per cent in the third quarter of financial year 2023 averaged, down from 9.2 per cent in the second quarter. But average prices paid in March alone were up 9.4 per cent, UBS said. And Woolworths’ price inflation was higher than Coles over the quarter at 9.1 per cent versus 9 per cent, respectively.”

(LaFrenz, 2023)

Not to mention up to an 80% increase on your utility bills to keep you warm in winter, and cool in summer, things are starting to spiral. 

There is however another way, US studies have shown that “households that shop more frequently, typically incurred less food waste” (Ellison, Fan &Wilson, 2022). In addition, should households adopt certain “food management behaviours such as meal planning, grocery shipping, food preparation and food storage as key activities threat can promote or reduce food waste” (Gunders, 2012, Neff eat al., 2015; Nikolaus et al 2018; Quested eat al., 2013; Schanes et al., 2018; Stancu et al., 2016; Stefan et al.,2013; Thyberg & Tonjes 2016; WILLIAMS ET AL., 2012). 

With this academic research in mind, what if we applied this to our simple Aussie household? What if we increase the number of short trips we head to our local grocery store? What if we shopped to consumer, rather than hoarded in order to waste? 

What if you added 15 minutes on your way home to work, utilising smart phone applications such as Gander.co or Frugl.com.au in order to maximise the efficiency of your household grocery shop?

The author of this report, used his own app, Gander to purchase from his local Spano's IGA grocery store and IGA Robina, on Australia’s Gold Coast. 

 

He was able to purchase $110.00 of groceries for $62.80. That was key proteins such as high quality chicken breast, stir fry beef, as well as supporting items such as vegetables, soy sauce, pasta and noodles. That provided lunch and dinner for a family of 5 people (2 adults + 3 Children) and 1 adult family member, for 3 days! That is $4.18 per meal per person! 

 

High quality, differentiated meals, all cooked fresh, just because we shopped more frequently, used apps and purchased more effectively. 

Implementing Just-In-Time (JIT) Shopping for your home, on your way home!

So, what if you were able to increase the number of times you use apps such as Gander, change your visit to the supermarket from an hour or two ordeal to a 10-15 minute shop a few times a week, saving you overall time, money and providing your family variety, meal options and a sense of pride that today isn’t just “another day of sausages”, but each day there is something new, healthy and nutritious for your family without breaking the budget. 

The “Just-In-Time” shopping method gives you and your family just that. An option, to save money, waste less food at home (and in the supermarkets) while also making an impact on the amount of waste that goes into landfill both from the supermarkets and your home). It’s a Win/Win/Win! 

Summary

Just because a family is on a budget, it doesn’t mean you have to cut back, nor does it mean you are destined to shop at discount retailers. It means you need to me more savvy on the smart phone applications and implement a JIT or ‘drop in shop’ to maximise your savings and value rather than do your ‘one big weekly shop’, often leaving families with no more discretionary income.

Gander is new to the Australian market, however with over 500+ new stores about to be on boarded, they provide you and your family, anywhere in Australia with a meaningful and sustainable opportunity to save money, and spend a little on yourself in these trying times! 

For more information on how to save money on your family grocery bill, while also doing your bit of sustainability and the environment visit Gander.co for more waste saving and sustainability ideas!  

Reference List

Karmarkar (1989) “Getting Control of Just-in-Time”, Harvard Business Review, September-October 1989, Harvard Business School 

LaFrenz (2023) “Fresh food prices spike in March: UBS”, Australian Financial Review, April 20, 2023