JIT aims to reduce the amount of time & resources needed to produce and deliver goods & supplies. It also controls inventory levels. Read more or visit Shipyaari.

1. What is Just-in-Time
Inventory

2. In today’s world, logistics operations are becoming more efficient using AI (Artificial Intelligence)
and ML (Machine Learning), The industry has evolved through the years, using some of the most
advanced technologies at that point of history. When it comes to technology, the logistics industry
has always been one of the early adopters and in some case – Innovators. One such example
would be introduction of Just-in-time (JIT). In 1950s-60s, an engineer at Toyota Motor Corporation
called Taiichi Ohno in Japan, developed a strategy called Just-In-Time (JIT).

3. Pros and
Cons
Companies using JIT have a number of benefits over conventional methods. This technique
often helps bring down production timelines and also lowers expenses by reducing the
requirement for warehousing space. Additionally, businesses save on wastage of raw
materials because they only order and purchase as much as they need at that given
time.

4. The risk for supply chain disruptions is one of big drawbacks of JIT inventory system.
The entire manufacturing line may get halted if a supplier of raw materials is unable to
deliver the products on time, hence reliable suppliers are a key for JIT system to work
flawlessly.

5. Unforeseen situations can also result in these disruptions – A simple example would
be COVID-19. Due to lockdowns, there was a chaos in the supply chains across the
world. Companies using JIT faced long delays in their production cycle. While
government allowed essential goods production to continue and they were exempted
from the lock down, numerous of their suppliers were not part of these exceptions.

6. Essentials to have
JIT
Turnarounds: How quickly can my products be produced or supplied?
Forecasting: Do I have enough faith in my sales projection to reflect changing consumer demand,
including seasonality?
Flexibility: Can my manufacturing and supply chain respond to unforeseen events like supplier
outages or natural disasters?

7. Vendors: Can I always count on my suppliers to deliver on time? Is my system for
fulfilling orders effective enough to ensure delivery of goods on time? especially when
accounted for supply chain delays

8. Conclusio
n
The inventory management system of JIT has been in use since a long time. The method is practiced by
many across the world, and has been adapted as per their specific requirements. Be it supplier to
manufacturer, manufacturer to distributor or distributor to retailer. JIT can be practiced throughout to
minimize storage, wastage and cost. Modern AI and ML have revolutionized JIT. SaaS business tools have
made the job simple, faster and efficient, by providing features like demand forecasting, live inventory
tracking, and automated order generation.

9. It’s imperative that the entire supply chain ecosystem works in tandem to make a JIT processes
function smoothly. From the suppliers to the transportation companies each cog of the wheel must
work in sync. The logistics partner’s role is critical in this entire system as they ensure pick-ups and
deliveries are on schedule, eventually this lies at the heart of a successful just in time system.

10. business@shipyaari.co
m shipyaari.com
Know