A strategy that reduces inventory levels by coordinating production and delivery so items arrive exactly when they are needed, minimizing storage costs and waste while improving cash flow. This approach requires precise demand forecasting, reliable supplier relationships, and advanced warehouse management systems to synchronize timing across the supply chain.
JIT significantly impacts warehouse operations by reducing storage space requirements, lowering carrying costs, and decreasing the risk of obsolete inventory. However, it demands exceptional coordination and real-time visibility into inventory levels, supplier performance, and customer demand patterns. Warehouses implementing JIT must maintain backup plans for supply disruptions and invest in technologies that enable rapid response to changes.
For example, an automotive parts distributor might receive daily shipments of specific components timed to arrive just hours before assembly line requirements, eliminating the need for large safety stock while ensuring production continuity.
