Inventory that arrives exactly when needed does not sit idle. Just-in-time is a strategy in which materials and products are produced or delivered only as required for the next step in the process, minimizing holding stock.
Success depends on reliable suppliers, short setup times, stable schedules, and rapid information flow. Factories and distribution centers receive frequent small deliveries rather than large infrequent ones. Quality problems surface quickly because there is little buffer to hide them.
Disruptions—traffic delays, supplier outages, demand spikes—can halt operations when buffers are thin. Many organizations therefore blend just-in-time principles with selective safety stocks. The ideal remains low inventory with high service, achieved through discipline rather than wishful thinking.
- Strategy of delivering goods exactly when needed
- Minimizes idle inventory throughout the chain
- Requires reliable supply and stable processes
- Exposes problems quickly when buffers are removed
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