Just-in-Time (JIT) | Shipping Term Explained | Logistics Glossary

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Just-in-time (JIT) is an inventory management strategy that consists in aligning the supply of goods and raw materials with the production schedule.


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What are the advantages of Just-in-time?

Just-in-time is a stock and inventory management method to reduce inventory, storage and handling costs at the minimum. Companies use this method to receive goods as they need them.
Advantages of JIT:

  • reduced warehouse costs;
  • reduced obsolete inventory;
  • increased inventory turnover ratios;
  • shorter production runs.

Disadvantages of JIT:

  • supply chain disruptions can block production;
  • unexpected price changes can increase costs;
  • higher dependency on local sourcing and supplier costs.


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