Lapasar
Logistics & Fulfilment

Just-in-Time (JIT)

Also known as: JIT

Just-in-time (JIT) is an inventory strategy where goods are ordered and received only as they are needed, minimising stock held on hand.

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JIT aims to cut the cost and waste of holding inventory by synchronising supply closely with demand — materials arrive just as they are needed for production or sale. It frees up cash and space and exposes quality problems quickly, but it depends on highly reliable suppliers and short, dependable lead times.

The trade-off is resilience: with little buffer, any supply disruption can halt operations quickly, as recent global shocks demonstrated. Many organisations now blend JIT efficiency with modest safety stock on critical items.

Frequently asked questions

What is just-in-time inventory?
Just-in-time is a strategy of ordering and receiving goods only as they are needed, minimising inventory held and the cost of carrying it.
What is the risk of just-in-time?
With little buffer stock, any supply disruption can quickly halt operations. JIT depends on very reliable suppliers and short, dependable lead times.

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