The Procurement Glossary » Just-in-Time (JIT)

Just-in-Time (JIT)

Inventory & Logistics

Definition

An inventory strategy where materials arrive exactly when needed, minimising stock held.

Explanation

JIT slashes carrying cost and waste by synchronising supply with demand, but demands reliable suppliers and short, dependable lead times — and is vulnerable to disruption. It is a hallmark of lean operations.

Example

Under JIT, components arrive hours before assembly, so almost no inventory sits idle.

Related terms

• Lean Procurement — Applying lean principles to eliminate waste and add value across procurement processes.
• Inventory Carrying Cost — The total cost of holding inventory — capital tied up, storage, insurance, obsolescence and shrinkage.
• Replenishment — The process of restocking inventory to maintain target levels as items are consumed.
• Just-in-Case (JIC) — An inventory strategy of holding extra stock to buffer against disruption, prioritising resilience over lean efficiency.

Frequently Asked Questions

What is Just-in-Time (JIT)?

An inventory strategy where materials arrive exactly when needed, minimising stock held. JIT slashes carrying cost and waste by synchronising supply with demand, but demands reliable suppliers and short, dependable lead times — and is vulnerable to disruption. It is a hallmark of lean operations.

Can you give an example of Just-in-Time (JIT)?

Under JIT, components arrive hours before assembly, so almost no inventory sits idle.

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