Let's start at the begining. JIT (Just In Time) is part of the lean manufacturing concept of making something only after a customer has pruchased it. That requires having inventory available (at your location or in transit for quick delivery) something close to immediately. This meant if the supply chains operated efficiently, where the materials you need were sourced didn't matter. However, the latest disruptions of the supply-chain has called this assumption into question.

Before lean a business would purchase inventory based on historical records and stockpile it. You had the piece of mind that when the order came in you could respond immedisately but what happens when your forecast is wrong? And if you buy too much - that is cash collecting dust. We have traded security for speed and a better bottom line.

Topics: Risk vs Risilience What If You Sell Time - What Time As Inventory? Practical Help with John Richards