Just in Time Supply Chain Meaning
What is a Just in Time Supply Chain?
Just in time supply chain is a term used to describe a supply chain that is optimized for efficiency and timing. It's sometimes also referred to as lean manufacturing. In a just in time supply chain, inventory is only produced and delivered as needed, and there is little to no waste. Or in other words, the production is only started once an order is placed.
This type of supply chain management is designed to minimize waste and inventory costs and maximize efficiency simultaneously. It is often used in manufacturing and other industries where timing and efficiency are critical.
JIT supply chain management requires close collaboration between suppliers and manufacturers and accurate forecasting of demand. It can be challenging to implement but can be very beneficial for companies that can do so. A just in time supply chain can lead to lower inventory costs, shorter lead times, and less waste.
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