GLOSSARY
JIT: Just-in-Time Delivery
Just-in-Time (JIT) is a production and logistics management strategy. It means that the material needed for production is delivered precisely when it is needed, as the name suggests. Just-in-Time refers to when a shipment reaches its destination “just in time” for its intended use in logistics. By eliminating warehousing and keeping capital commitments to a minimum, JIT aims to make the value creation process more cost-effective and leaner.
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What are some advantages and disadvantages with the Just-in-Time approach?
Despite what you might think, being “just in time” is not always a good thing in the logistics industry. With Just-in-Time, the whole flow of material along the supply chain must be exactly synchronized. Here are some advantages and some disadvantages to put it into perspective.
Advantages:
- There is no need to keep stock, which saves space and money
Disadvantages:
- High measure of control is fundamental
- The market can sometimes have unpredictable shifts, as we saw with panic buying at the start of the Covid-19 pandemic, leaving shelves empty
Key Takeaways
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- In contrast with JIC operations, which prioritizes stocking up inventories in advance to avoid missing stock when it’s needed, JIT operations only receive inventory as it is expected to be required.
What are the differences between Just-In-Time and Just-In-Case delivery?
Just-in-Case (JIC) is a way of managing inventory that puts risk management first, usually by having more standing inventories.
What are the differences between (JIC) and (JIT)? In essence, JIT operations only receive inventory as it is required, whereas JIC operations stock up inventories in advance. While JIC prioritizes minimizing the possibility of goods running out of stock or falling behind the production schedule required to fulfill orders on time, JIT aims to optimize the lean method by reducing waste and excess inventory.
What are some key aspects of JIT?
Just-in-time, or JIT, is an inventory management method in which goods are received from suppliers only as they are needed. The main objective of this method is to reduce inventory holding costs and increase inventory turnover. It has now come to mean producing with minimum waste. “Waste” is taken in its most general sense and includes time and resources as well as materials. Elements of JIT include continuous improvement, eliminating waste from overproduction, waste of time, transportation waste, processing waste, inventory waste, waste of motion, and, finally, waste of product defects.
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