What Is a Just-In-Time Inventory Control System?

Jonny Parker
December 27, 2023

For many businesses, inventory control involves stockpiling the products you will need for the season while mitigating the risks of overstock using demand forecasting. Just-in-time inventory is the exact opposite strategy. By ordering stock based only on what customers order, some businesses can keep more efficient inventory control, lower storage costs, and reduce overstock using the just-in-time (JIT) method.  

This strategy can be risky, however, a JIT inventory control system could be the answer for businesses who want to employ the strategy but fear the unpredictability of their customers’ demand and their suppliers’ behavior. 

What is just-in-time inventory control?

The JIT inventory control method involves waiting to order products from suppliers until they’ve already been ordered by customers. For the average manufacturer or retailer, the strategy will look something like this: