What is the inventory management method that aims to minimize stock by receiving goods only as needed? The answer is just-in-time.
Just-in-time, commonly abbreviated JIT, is an inventory strategy in which materials and components arrive close to the moment they are needed for production. By avoiding large inventories of unused parts, a company can reduce storage costs, tied-up capital, spoilage, and waste. The method is closely associated with the Toyota Production System, where it became one of the system’s two conceptual pillars.
JIT depends on dependable suppliers, consistent production, accurate demand information, and strong quality control. Its efficiency can become a vulnerability when transportation delays, shortages, natural disasters, or sudden demand spikes interrupt supply. A plant carrying little safety stock has less cushion when deliveries fail.
Lean manufacturing is broader than JIT: lean seeks to remove non-value-adding activity throughout an organization, while JIT focuses specifically on timing and inventory. Kanban is often a signaling or replenishment tool used to support JIT, not the name of the overall inventory method.