JIT Purchasing

JIT (Just-In-Time) Purchasing is a strategy where a company orders and receives materials or products only as they are needed for production or sales, rather than maintaining large inventory stock. This approach reduces storage costs, minimizes waste, and ensures fresher or more up-to-date stock. By coordinating closely with suppliers, companies can respond quickly to demand changes, improving efficiency and cash flow. However, it requires precise planning and reliable supplier relationships; delays can disrupt production or sales. Overall, JIT helps businesses operate more leanly and adaptively, avoiding excess inventory and associated costs.