Just-in-Time (JIT)
Just-in-Time (JIT) is an inventory and production strategy in which materials and components arrive exactly when they are needed for production or sale — no sooner — so that inventory held is minimised. Pioneered in the Toyota Production System, JIT treats inventory as waste and pulls supply in response to actual demand rather than pushing it into stock in advance.
Done well, JIT slashes the cost of holding stock, warehousing, and obsolescence, frees up cash and space, and exposes quality and process problems so they can be fixed. But it demands reliable suppliers, short and dependable lead times, high quality and tight coordination — and it trades resilience for efficiency: with little buffer stock, a JIT supply chain is vulnerable to disruption, as global shortages and port congestion starkly revealed, prompting many firms to add "just-in-case" buffers. JIT is closely associated with kanban (the signalling method that triggers replenishment) and lean thinking. It remains a foundational supply-chain concept, now balanced against the need for resilience.
JIT turned inventory from a necessity into a target — arriving exactly when needed, it frees cash, space and exposes hidden problems. But it trades buffer for efficiency, and the pandemic showed how brittle that can be, sending firms toward "just-in-case" hedges. Understanding JIT and its resilience trade-off is central to modern inventory and supply-chain strategy.
What is the goal of just-in-time?
To minimise inventory by having materials arrive exactly when needed, cutting holding, warehousing and obsolescence costs.
What is the risk of JIT?
With little buffer stock, the supply chain is vulnerable to disruption, so many firms now balance JIT with "just-in-case" buffers.