Having your product right when you need it is the holy grail of manufacturing and operations efficiencies. Optimizing your supply in a manner that your components and raw materials are ordered only at the time when you need them is a challenging task, despite its simple philosophy. The process has increasingly come into focus of business professionals in the year of the pandemic, with huge disruptions in supply lines across the globe. However, this only means that more emphasis needs to be put on planning, regardless of how big your business is.
- A just in time inventory system is a strategy that helps companies receive goods as close as possible as to when they’re actually needed.
- A major benefit of the JIT inventory system is that you won’t need to store big quantities of inventory which will improve efficiency.
- The JIT inventory system is very popular when it comes to small businesses and also major corporations because it improves cash flow.
“The JIT inventory system is popular with small businesses and major corporations because it provides more efficient use of working capital and enhances cash flow.”
Read more: https://www.investopedia.com/ask/answers/051215/what-are-some-examples-just-time-jit-inventory-processes.asp