![]() ![]() Many JIT companies produce a product or add it to inventory only when it receives new orders from customers. ![]() They are essentially two different points in the supply chain but can operate independently or at the same time. JIT inventory and manufacturing share the same basic principles - produce or receive the product only at the time it is needed. What's the difference between JIT inventory and JIT manufacturing? ![]() You could say it's a case of working smarter, not harder. Ultimately, the goal of JIT is to align incoming products with production schedules and sales forecasts instead of having a surplus of inventory on-hand. They kept a lot of inventory on hand just in case supplies would run low due to higher demand or service interruptions. Prior to the JIT inventory system, producers would use the “just-in-case” approach. Fast fashion designs respond to shifting trends and keep pace with consumer demands. Retailers and distributors are adopting the JIT approach to position products nearby to restock shelves when popular items run low. Food producers like Kellogg's follow a similar discipline, continuously feeding raw materials into production. Apple keeps its inventory of expensive electronic devices low. Since then, companies such as Apple, Motorola, and Kellog's have adopted the process.įor an automobile manufacturer, components such as seats arrive at the exact time the workers are ready to bolt them in place. JIT got its start when Toyota put their system in place for automobile production in the 1970s. There may be an arrival window that the supplier can deliver the parts ahead of time to ensure the assembly line doesn't have to slow down. Over the past several decades, companies large and small have adopted a Just In Time (JIT) Inventory strategy to reduce costs and eliminate waste.Īs the name implies JIT means inventory arrives at the point of use when it's needed, and not a moment before. ![]()
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