What is the just-in-time supply chain strategy?

Just-in-time, or JIT, is a strategy in which supply chain partners move materials right before they are needed. As a result, little or no inventory is stockpiled, reducing storage costs.

Just-in-time (JIT), along with “lean” supply chains — which also prioritized maximum efficiency and cost savings — were considered smart supply chain strategies, but once COVID-19 disruptions hit supply chains in 2020, many enterprises came to a grinding halt. With tight inventory and nothing in the stockpile, future-looking enterprises have started moving toward just-in-case supply chains due to increasing demand and supply volatility.

The just-in-case approach calls for keeping a larger inventory stocked in advance. Learn more about GEP’s supply chain management services and supply chain software solutions.