How Just-in-Time (JIT) Business Methodologies Operate

Janek Pawlik is a longtime presence in the Franklin, Tennessee consulting community who provides technology solutions in manufacturing. Janek Pawlik’s areas of training include just-in-time (JIT) methodologies.

JIT is an approach to inventory management focused on the delivery of raw materials and other goods from suppliers on an as-needed basis. The aim is to enable quick inventory turnover while minimizing the warehousing costs associated with unused materials. It involves calibrating every aspect of the supply chain such that room for error is kept at a minimum and overproduction stops being an issue. With products ordered only as required, the risk of accumulating unneeded items that are expensive to store is minimal.

Ideally, with JIT, items are ordered from the supplier at the same time that the customer places an order. There are then minimal holding requirements prior to shipping. At the same time, the manufacturer operates on a demand-pull basis that requires the capacity to rapidly ramp up production when demand increases. This encourages sourcing raw materials from the local area, as an expedited workflow requires quick and efficient transportation. When appropriately implemented, JIT manufacturing can strengthen market competitiveness while decreasing waste, boosting production efficiency, and elevating product quality.