Just-in-Time (JIT) is a production and logistics principle in which materials are delivered or produced exactly when they are needed. The goal is to minimize inventory and optimize processes.
JIT stands for "Just-in-Time" and originated in the Japanese automotive industry, particularly Toyota. The approach aims to provide materials and products precisely – neither too early nor too late. This drastically reduces storage costs and makes production more efficient.
Companies that use JIT closely coordinate their supply chains with their production processes. Suppliers must plan precisely to ensure on-time deliveries. Communication between departments also plays an important role. In-time transport only works smoothly when all links in the chain work together.
A major advantage of "Just-in-Time" is cost savings. Eliminating large storage areas reduces fixed costs and tied-up capital. At the same time, flexibility increases because companies can react more quickly to market changes. Products are manufactured more precisely to meet demand, which also reduces the risk of overproduction.
Typical terms used in the context of Just-in-Time are: Just in sequence, Lead Time, Supply Chain and Distribution Logistics
