Just in Time Inventory Management System

Just in Time (JIT) Inventory Management Explained:

Just in time is an inventory management system that focuses on maintaining an adequate inventory. The purpose of Just in time inventory manufacturing is to only order stock when required to keep inventory to a minimum. This supply chain stock control system requires keeping a close collaboration with suppliers to ensure the stock arrives on time to meet customer demands.



Just in Time Advantages and Disadvantages:

Advantages of Just in Time Management:

Just in time stock control systems have become an increasingly popular stock management system over the years to maintain competitive advantage and increase profitability. There are many benefits to implementing just in time manufacturing systems:

Eliminate Waste:

The key feature of just in time stock control is the model reduces over-ordering and excess stock. Keeping a low level of inventory reduces the risk of unsold and will have minimal amounts of inventory obsolescence. The minimal stock also means production errors can be detected easily resulting in fewer faulty products being sent out to customers!

Improves Warehouse Efficiency:

Implementing just in time inventory stock control improves warehouse efficiency. The software system eliminates faults in the warehouse operations and improves the quality of processes through continuous improvements.  

Reduced Costs:

Receiving inventory when required will reduce operational and inventory costs. There are many expenses that are reduced due to the just in time management stock control system such as labour expenses, storage experiences, stock expenses etc.

As less space is required for just in time inventory manufacturing systems, the holding costs are lowered. Because less inventory is required, businesses invest significantly less in their inventory. Additionally, just in time stock control systems also reduces labour costs as fewer warehouse operatives are required to fulfil orders.

Just in time inventory management manufacturing also decreases the amount of storage-related accidents, therefore, reducing additional expenses.

Improve Customer Service:

Customer service is essential in eCommerce businesses therefore, it is important to provide high standard service. Just in time stock control systems reduces lead times for consumers as the system reduces manufacturing time and therefore can deliver products more quickly and easily! As there is less inventory, suppliers can concentrate on producing high-quality products with low failure rates which in turn increases customer satisfaction and lowers production costs.

What are the Disadvantages of Just in Time Manufacturing?

Despite its numerous advantages, the just in time stock control may have significant disadvantages that would not be suitable for your business. Just in time stock control, for example, may necessitate a complete revamp of your company systems, which may be difficult and costly to implement.

Supplier Dependence:

The just in time stock control system requires a reliable supplier to deliver the inventory on time to meet the customer demands. However, an undependable supplier that fails to meet the delivery times and delivers incorrect quantities will cause the production process to be disrupted.

The just in time stock control system requires more planning to ensure an organised and prepared workflow. As a result, businesses must account for this when planning inventory levels, ensuring that suppliers can meet varying volume requirements at different periods, especially during season demands.

Missed Business Opportunities:

With the just in time stock control system, it requires having little inventory in stock, however, this can cause a disadvantage to the business as you will have the risk of running out of stock. Businesses may not be able to meet massive orders immediately and won’t be able to provide fast service to customers.

How does Just-in-Time Manufacturing Work?

The below diagram highlights the different stages in the Just in Time stock control system: 



What Businesses should use Just in Time Manufacturing?

There are many different industries that would benefit from implementing just in time inventory manufacturing in their warehouse operations. Fashion, technology, retail, packaging, luxury, and publishing companies are all examples of businesses that used just in time systems.


You can outsource with Meteor Space to improve your existing stock control tactics. We can help increase your critical skills, improve your warehousing efficiency, and improve customer service. To find out if just in time manufacturing is the ideal inventory management system for your business, speak to one of our experts about our inventory management stock control system and capabilities! Please get in touch today.

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