Just-in-time

Just-in-time (JIT) is an inventory management and production strategy where materials, components, and finished goods are received or produced only when needed, reducing waste, storage costs, and the risk of obsolescence. The core principle is to minimize inventory levels and maintain a continuous flow of goods through the supply chain. This approach emphasizes close collaboration with suppliers, reliable transportation, and efficient production processes. It is often paired with strategies for lean manufacturing.

Just-in-time meaning with examples

• The car manufacturer implemented a just-in-time inventory system, receiving tires, seats, and other components precisely when needed on the assembly line. This significantly reduced the need for large storage warehouses. The result was a much lower inventory carrying cost and a faster production cycle.
• A restaurant uses a just-in-time approach to ordering ingredients, purchasing fresh produce and meats daily, avoiding spoilage and ensuring high-quality meals. This efficient method reduces food waste and minimizes storage space needed for perishable goods, resulting in cost savings.
• The software development team adopted a just-in-time deployment strategy. They release new features only when thoroughly tested and validated, ensuring a bug-free, functional application. It allows for quick responses to user feedback.
• To meet the demand for high fashion, the clothing company uses a just-in-time manufacturing approach. They adjust output on a weekly basis to avoid overstocking. This strategy minimizes the risk of unsold inventory and promotes efficient resource allocation.
• Healthcare facilities employ a just-in-time approach to medicine, with specific drugs and medical supplies ordered only as needed by patients, optimizing space. This limits storage expenses and guarantees the freshness of items.