What does JIT stand for in supply chain management?

Just in Time (JIT) is a supply chain management strategy that focuses on reducing inventory costs and improving efficiency by receiving goods only as they are needed in the production process. The primary goal of JIT is to minimize waste and increase responsiveness to customer demand. This approach allows companies to lower their inventory level, thereby reducing holding costs and the risk of obsolescence.

Implementing JIT requires a well-coordinated supply chain where suppliers are able to deliver materials at the right time and in the right quantity. This method enhances the production process and allows companies to streamline their operations, optimizing both time and resources. By understanding and applying the JIT principle, organizations can become more agile and competitive in the marketplace.