JIT (Just-In-Time) Inventory
Ordering stock to arrive right as it's needed for sale or production, minimizing how much cash sits in a warehouse.
In practice
It reduces holding costs and the risk of dead stock, but it leaves very little buffer for supply chain disruption - a single delayed shipment can halt sales or production entirely, which is why JIT businesses lean heavily on reliable, well-forecasted suppliers.
A manufacturer orders raw materials to arrive the same week they're needed on the production line, rather than keeping months of stock in a warehouse.
Why it matters
JIT minimizes cash tied up in inventory, but global supply chain disruptions have shown that businesses running lean on JIT have far less buffer to absorb delays than those holding safety stock.
Worth knowing
- Depends on highly reliable, well-communicating suppliers - a single missed shipment can halt operations.
- Reduces warehousing costs and the risk of dead stock from overordering.
- Works best for predictable, steady demand rather than highly seasonal or volatile products.
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Let's talk it through
Tell us where things stand with putting jit into practice and we'll respond with next steps, no forms, no waiting in a queue.
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- No long-term contract to start the conversation
