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      JIT is a type of inventory management requiring close collaboration with suppliers to ensure that raw materials arrive when production is set to begin, but not earlier. The idea is to keep as little inventory on hand as possible to meet demand.


      Reduces inventory waste

      A just-in-time strategy prevents overproduction, which occurs when the supply of a product in the market outnumbers the demand. The result is, therefore, an accumulation of unsaleable inventory. These unsaleable items become inventory deadstock, causing waste and taking up space in the warehouse.

      Decreases warehouse holding cost

      The warehouse holding expenses are kept to a minimum in a just-in-time system. Because you only order when a buyer orders, your item is already sold before it reaches you, so there’s no need to keep it in storage for long.

      It gives the manufacturer more control

      The manufacturer has complete control over the manufacturing process in a JIT model, which operates on a demand-pull basis. They can immediately adjust to customer demands by raising the production of in-demand commodities while decreasing the output of slow-moving items.

      Local Sourcing

      Because just-in-time manufacturing necessitates starting production just when an order is placed, you’ll need to acquire your raw materials locally because they’ll arrive at your unit much sooner. Local sourcing also decreases the amount of time and money spent on transportation.

      Smaller investments

      Only essential stocks are procured in a JIT strategy, requiring less working capital to finance procurement. As a result, the organization’s return on investment would be good due to the lower amount of inventory-maintained merchandise.


      Just-in-time delivery necessitates meticulous planning of the entire supply chain and superior software to complete the whole process from start to finish, increasing efficiency and removing the possibility of error because each activity is monitored. JIT inventory management improves a business’s return on investment by cutting inventory carrying costs, enhancing efficiency, and reducing waste.


      Overordering and excess are eliminated with the JIT inventory management strategy.

      • Low inventory levels reduce the danger of unsold inventory becoming obsolete in the warehouse.
      • When production levels are low, it is easier to discover and repair defective inventory items, lowering scrap costs.


      JIT boosts productivity by lowering the amount of time and resources spent on manufacturing operations.

      • Manufacturers can make things more quickly.
      • JIT allows producers to swiftly and efficiently deliver new items.
      • With less raw material stock to draw down before product changes, engineering change orders to existing goods are easier to implement.


      Across the whole production process, JIT may eliminate bottlenecks and delays.

      • JIT reduces manufacturing time, reducing lead customer times.
      • Manufacturing errors can be detected and repaired sooner, resulting in fewer defective products.
      • Shorter production runs reduce finished goods investment due to faster equipment setup times.
      • Employees move individual parts through the production steps in a work cell, reducing scrap. Work-in-process queues that develop at more specialized workstations are likewise eliminated using cell models.
      • Placing production work cells close together reduces the work-in-process inventory that moves between them.


      Receiving items on a need-to-know basis saves money on inventories.

      • JIT’s low inventory levels keep the working capital required to a minimum.
      • Because less space is utilized, inventory holding costs (such as those for warehousing) are minimal. Companies invest small amount in inventory since JIT doesn’t necessitate having a large amount of stock on hand.
      • JIT allows organizations to order raw materials only when needed, freeing up funds for more beneficial purposes. Labor costs are reduced since the number of person-hours necessary to fulfill orders is typically less than full-time production.


      A flexible workforce can concentrate on producing high-quality, low-defect products. 

      • Better results increase customer satisfaction while lowering production costs.
      • With fewer goods moving around the shop floor, teams can concentrate on creating high-quality products.
      • Storage-related incidents are reduced because there is less merchandise on hand.
      • Quality is guaranteed in advance by suppliers. As a result, deliveries are sent directly to production zones instead of being kept at reception for inspection.


      JIT inventory management is frequently used by businesses to save costs. JIT can provide more excellent value than traditional approaches requiring more extensive inventories. Find out more about inventory control measures.

      Just-in-time inventory management cuts waste, improves cash flow, promotes flexibility, optimizes human resources, and empowers teams.

      Successful JIT inventory management maximizes earnings by minimizing stock investment. To keep track of inventory, they employ data. They collect data on shipping, customer satisfaction, loss prevention, warehousing, purchases, reorders, products in storage, receiving, stock turnover, and more utilizing an ERP system.


      1. Because inventory is kept to a minimum and only based on the customers’ original orders, reworking orders is extremely tough.
      2. The concept relies on the performance and timeliness of suppliers, both of which are difficult to guarantee. 
      3. Furthermore, the producer must be ready to cover any unexpected rises in raw material prices, as they cannot wait to order when prices are lower.
      4. Because the JIT approach necessitates much shipping between the supplier, manufacturer, and client, it can have negative environmental consequences due to the excessive use of fossil fuels and packaging.
      5. A JIT methodology can significantly influence the business in the event of an interruption. Sales may grind to a halt since there is no excess stock to rely on.
      6. A just-in-time system must be meticulously tracked and organized, which is difficult to do manually. The software makes the entire process easier to handle. While good software can help you, implementing a new software system might be difficult and costly, and teaching your employees how to utilize it.

      As a result, just in time saves you much money that would otherwise be spent on inventory storage. Simultaneously, just in time should be carefully implemented so that your firm does not suffer losses in unforeseeable situations.

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