Just in time (JIT) is an inventory management system, used to manage the stock that is kept in storage. It involves receiving goods from suppliers as and when they are required, rather than carrying a large inventory at once. Companies like to use JIT as it is seen as a more cost efficient method of holding stock. Its purpose is to minimise the amount of goods you hold at any one time
- Less space
- Risk of
running out of stock
- Lack of
control over time frame
If run properly, JIT inventory management is seen as a great way
of managing inventory. While it is not without risks, it has significant
rewards, and is ideal for those who are able to plan carefully in advance, and
build strong relationships with suppliers.
Do you have experience applying this in your organization or can your organization benefit from this inventory management system?