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Just-in-Time (JIT)

A strategy in supply chain management where inventory is received or produced only when needed, reducing storage costs, and waste.

What is Just-in-Time (JIT)?

Just-in-Time (JIT) is a logistics and supply chain management approach that focuses on delivering goods and materials precisely when they are needed, neither too early nor too late. The JIT concept aims to minimize inventory holding costs, reduce waste, and improve operational efficiency by synchronizing production and transportation processes to meet customer demand as closely as possible.

To achieve a JIT strategy, it’s important to have a well-established relationship with your preferred carrier or 3PL provider. Since shipping is only done as needed instead of on a regular schedule, you may be faced with spot-rate pricing. 

Long-term, this strategy can get expensive unless a deal is worked out with your shipping partners. The cost of warehousing is also a factor. If the business is operating in an area with high warehousing costs, then an occasional high shipping rate could be worth it.  

Navigate the complexities in truckload shipping easily with our comprehensive resources blog. You’ll find practical insights and strategies to increase your profitability. 

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