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What Is Just-in-Time (JIT)?

Understand how Just-in-Time fits into the supply chain

Just-in-time (JIT) refers to the inventory management method of maintaining leaner inventories on site and relying on smaller, more frequent shipments that arrive when needed. Utilizing lean inventories allows facilities to maximize operational efficiency and improve the cost effectiveness of their services. If a supply chain is reliable and a company can get what it needs when it needs it, it doesn't have to stock extra supplies or inventory. For example, if space is at a premium in a hospital or other health care facility, reliable JIT logistics can help those providers optimize care by devoting space to patients rather than inventory.