![]() JIT can also help seasonal companies avoid ending their season with too much merchandise in stock. The technique is beneficial if you sell products that quickly become outdated, such as food or cosmetics with “sell by” dates, consumer electronics accessories, or apparel (which can soon become “so yesterday” in style). Retailers, manufacturers and food service businesses have benefitted from implementing JIT inventory management. New inventory or materials are ordered only when the existing supply declines to a certain level. In general, the JIT approach aims to keep only a minimum amount of inventory in stock. ![]() It owes its beginnings to Toyota, which implemented its just-in-time auto manufacturing system to stop overproduction during the post-WWII economy. Just-in-time inventory management has been around for decades. What is Just-in-time Inventory Management? The pandemic’s hit on the economy taught us how volatile supply sources require business owners to inject an additional “just in case” component to their inventory strategy and always be ready to pivot to find new resources for new markets. However, implementing JIT inventory successfully depends on several crucial factors, such as reliable supply resources, top-notch technology, and extensive research so businesses can accurately predict consumer needs and preferences. It helps limit pointless inventory expenses and ensures that goods arrive only when needed. Just-in-time inventory management (JIT), an offshoot of just-in-time manufacturing, is a lean management system created for better organizational efficiency. Given how the COVID-19 pandemic wreaked havoc on the global supply chain, causing numerous obstacles prohibiting or postponing getting stock on time, many small business owners wonder if just-in-time inventory is dead. What is just-in-time inventory management, and how can it help your business grow?
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