Just in Time (JIT) is a strategy that says: produce and order only when it is really needed. No full warehouses, no “just in case” stock. It sounds like an accountant’s dream—but only when managed properly does it unlock its full potential.
JIT originated in Japan, mainly at Toyota, and to this day it remains a foundation of lean manufacturing. But be careful: it works brilliantly as long as nothing goes wrong.
Why do companies choose JIT?
- Less cash tied up – you don’t need to keep warehouses full of parts.
- Lower storage costs – no need to pay for large storage facilities.
- Greater flexibility – you can react faster to changes in demand because you don’t hold excess stock.
- Better quality – smaller batches make it easier to catch errors before producing 10,000 defective items.
👉 See also: Production automation with Odoo – is it worth it and how much does it cost?
How does Just in Time work in practice?
- Make-to-order production – the customer places an order, the system sends a signal to production, and only then does the process start.
- Close cooperation with suppliers – materials arrive exactly when they are needed, not a month earlier.
- System integration – JIT cannot exist without tight integration of ERP, WMS, and production systems.
Real-life examples
- Toyota – a pioneer of JIT. For decades, the company has been a benchmark for efficiency thanks to this method.
- Personalized e-commerce – a customer orders a product with a custom print, and production starts only after clicking “buy now.”
- Small workshop – instead of producing a thousand mugs “for stock,” it makes 50 per day, strictly based on orders.
The most common JIT problems
- No plan B – a delayed shipment and the production line stops.
- Too few suppliers – if you rely on one and they fail, the entire project is blocked.
- Lack of real-time data – without ERP and automation, JIT simply will not work.
- Global crises – pandemics, wars, or events like the Suez Canal blockage can turn JIT into “just in trouble.”
👉 That’s why it’s also worth knowing the common pitfalls of implementations: 5 biggest mistakes when implementing Odoo ERP.
How to implement JIT – practical tips
- Start with process analysis. Where do you lose the most due to overproduction?
- Implement an ERP system. Without Odoo ERP or another solution that connects production, purchasing, and inventory, JIT is not feasible.
- Build strong supplier relationships. They must be partners, not just “Supplier X” on an invoice.
- Test on small batches. Before moving all production to JIT, validate the approach on a single process.
Frequently asked questions
Is JIT suitable for small companies?
Yes, especially for simple processes and where suppliers are located nearby.
Is JIT risky?
Yes—if you lack alternative suppliers and a contingency plan.
Does JIT always reduce costs?
Not always. With unstable supply chains, downtime costs may exceed the savings.
What should you choose – JIT or traditional inventory?
It depends on the industry and supply stability. In practice, many companies combine both approaches—for example, JIT for standard parts and inventory buffers for critical components.
