Just-in-Time (JIT)
Just-in-time (JIT) is a production and logistics concept in which materials, components, or goods are provided precisely when needed. The goal is to minimize inventory, shorten lead times, and increase efficiency along the supply chain.
Basics and Functionality
JIT (Just-in-Time) was originally developed in the automotive industry and requires close coordination between suppliers, production planning, and transportation. Inventory levels are minimized, so materials are provided only in the quantities and at the time they are needed in production.
Core principles:
- Demand-driven procurement: Goods are ordered only when required in production.
- Supply chain synchronization: Suppliers deliver precisely according to production schedules.
- Minimization of inventory costs: Low stock levels reduce capital tied up and storage space requirements.
- Flexible transport planning: More frequent, smaller deliveries require precise logistics processes.
Advantages of JIT
- Lower inventory costs and reduced capital tie-up.
- Faster responsiveness to customer demands.
- Reduction of material waste and overproduction.
- Optimized supply chains through continuous coordination between suppliers and production.
Challenges
- High dependence on suppliers and transport providers.
- Disruptions in the supply chain can lead to production stoppages.
- Requires significant coordination and planning efforts.
- Stable supplier relationships and accurate forecasts are essential.
Importance in Modern Logistics
JIT is now a central component of lean production and supply chain concepts. Companies that implement JIT successfully benefit from increased efficiency, lower costs, and enhanced flexibility. Especially in globalized supply chains, digital tools and real-time information are crucial for reliably managing just-in-time deliveries.