Just-in-Time Procurement

Just-in-Time (JIT) Procurement is a strategy where a company orders and receives supplies exactly when they are needed for production, minimizing inventory holding costs. This approach relies on efficient planning and strong supplier relationships to ensure materials arrive promptly, reducing storage space and waste. By coordinating closely with suppliers, companies can operate more flexibly and respond quickly to changes in demand, ultimately lowering overall costs and improving efficiency. JIT Procurement is commonly used in manufacturing to streamline operations and maintain a lean supply chain.