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Updated 26th November 2025

Just-in-time (JIT) production is an inventory strategy designed to reduce waste, minimise storage requirements and keep goods flowing at the exact moment they’re needed.

In logistics and manufacturing, you may also hear it called just-in-time manufacturing or just-in-time assembly. Originating from lean manufacturing principles, JIT has become a cornerstone of modern supply chain management, but it also places intense pressure on transport, warehouse workflows and material handling reliability.

With over 60 years of experience helping global manufacturers remove inefficiencies and automate high-volume loading, we understand how JIT success depends on eliminating bottlenecks, reducing manual handling risks and ensuring products move from production to transport without delay.

This guide breaks down the fundamentals of JIT, its benefits, its risks, and how automation plays a growing role in keeping lean supply chains stable.

Quick Summary:

  • What JIT is: A lean production method where goods are produced or delivered exactly when required, reducing inventory and storage costs.
  • Key benefits: Lower working capital, reduced waste, faster throughput and leaner logistics operations.
  • Main risks: Supply chain disruption, transport delays, labour shortages and manual handling bottlenecks that can halt production.
  • When JIT is the right strategy: Stable demand environments, predictable inbound materials, and operations where space and cash flow are tight.
  • How automation supports JIT: Automated Trailer Loading Systems (ATLS) and integrated warehouse workflows reduce delays, improve flow and ensure materials arrive just in time.

what is just in time production?

The Just in time (JIT) system is an inventory management system in which a company receives goods or materials as closely as possible to when it needs them. The system is designed to increase efficiency, minimise inventory and reduce wastage, as well as to cut storage costs. If a client cancels an order or a manufacturer is unable to complete the order for some other reason, the business responsible for fulfilling the order doesn’t have lots of unwanted stock lying around on the shelves as a result.

The automotive industry is renowned for the implementation of this strategy. Car manufacturers keep their typically large inventory levels low but rely heavily on their supply chain to deliver the parts they need as and when they need them to make the cars. The manufacturer will only order the parts to make the car after they’ve received the order itself.

Ultimately, JIT production is what some might deem a 'pull' production system. The pull system order signals when production is necessary. The demand then directs the firm to produce the right amount at the right time. JIT production is, of course,  risky, as we’ll discuss later in this post.

This guide explains how JIT works, when it’s appropriate, the operational and supply-chain planning, the risks to manage (supply disruption, variability), and practical steps warehouses and logistics teams can take, including how automation and our automated loading solutions can support JIT throughput and resilience.

Dell implemented a just-in-time (JIT) inventory approach, which allowed the company to build computers only after receiving customer orders, leading to an impressive decrease of more than 75% in inventory levels.

Other studies show JIT can reduce manufacturing cycle times by 50% or more in optimised environments.

Apples on Production Line

How is it different from traditional manufacturing?

The answer is simple. Whereas traditional manufacturing involves building up large volumes of stock or inventory, based on what you think customers might want, JIT production is all about making exactly what the customer wants when they request it. This allows the manufacturer to focus their resources on what they’re going to be paid for, rather than on building inventory.

One general benchmark for Manufacturing is holding 60-90 days worth of stock, reinforcing the high end of the "traditional" model. Whereas the JIT model aims to reduce excess inventory to have it only when needed, inherently targeting a near-zero inventory position.

In addition, according to the Association for Supply Chain Management (ASCM), Inventory carrying costs typically fall between 15% and 25%, therefore JIT production enables businesses to utilise their capital more efficiently.

the advantages of JIT production

Risky as it might be, when implemented correctly, JIT production can be more advantageous than traditional inventory management. Let’s take a look at some of the benefits this management system offers:

Green Apples Production Line

Cost Reduction

The fact that there’s a lower stock holding means there’s a reduction in storage costs, insurance, transportation and, since JIT production doesn’t require as many workers, labour costs. The manufacturer also saves money on the cost of raw materials because it’s only working with what it needs. Less of the company’s money is tied up in working capital.

The cost benefits of JIT extend beyond inventory savings. Overall operating costs reduce by 15-30%.

Smaller Investments

This style of management works well for smaller companies that don’t have the funds to buy large amounts of stock at once. Being able to purchase smaller amounts of stock as and when they need it allows them to keep their cash flow healthy.

Production Line Green Apples

Increased Productivity

JIT decreases the time and resources necessary to manufacture the items, speeding up production and shortening production runs. It’s also possible to implement any changes to products quicker. As a result, there’s less checking of the products and going back over them to correct faults and defects. This is because the manufacturer places the emphasis on assembling the product correctly the first time.

McKinsey states that companies can potentially reduce warehousing costs by 20-50% and transportation expenses by as much as 40% by implementing a Just-In-Time (JIT) model, which can lead to significant productivity gains.

Optimised Production

JIT can diminish product defects and automate processes, which eliminates bottlenecks and wastage across the production cycle. As a result, deliveries can arrive on time, especially if the manufacturer is sourcing materials or other necessary goods for production from local suppliers.

This shortens the waiting and cycle time between receipt and production, and customer satisfaction can increase. Scheduling means that jobs are performed exactly when they need to, and that production runs start and end just in time for shipping.

Production Line Bottle Caps

Less Wastage

One of this model’s big advantages is that it prevents companies from overstocking and having surplus raw materials, reducing the risk of stock just sitting in a warehouse and not being used or sold.

The manufacturer can minimise wastage further by being able to detect any defective products more easily and addressing the issue when the inventory items are low. In some industries, waste has been reduced by over 80% through utilising a JIT strategy.

Better Quality Products

JIT allows companies to focus on optimising their processes and manufacturing high-quality products because there are fewer items on the shop floor at any given time. Defects are fewer and customer satisfaction can be higher.

The model enables suppliers to guarantee more quality control, and there’s less wastage and fewer delays due to inspection. This production process enables a continuous improvement process and reduced obsolete stock as part of a circular economy, which in turn reduces lead times and improves quality assurance and quality control.

disadvantages of JIT production

As you can see from above, JIT production can bring significant benefits to any manufacturer who implements the system; however, it’s a highly risky way to manage inventory and things can go horribly wrong if the business doesn’t call it right. Here are some of the disadvantages of JIT production:

Production Line Batch Production Oven

Sensitivity to Errors

The greatest risk of JIT production is that you’re storing the bare minimum of inventory in your warehouse or other storage facility. When manufacturing using this system, there’s absolutely no margin for error. The manufacturer must be able to predict demand accurately, highlighting a further problem with JIT: it relies too much on forecasts.

The manufacturer is at the mercy of the supply chain (and the suppliers in it)

For this system to work well, the supply chain must operate perfectly. Even minor disruptions can cause production to stop at very short notice. If a supplier doesn’t deliver materials on time, delivers the wrong amounts or even the wrong materials or goods, this can trigger delays in the process. Of course, since the manufacturer has no materials to fall back on because they’ve kept the inventory so low, delays can result in huge losses for the organisation.

The shipping crisis in the Red Sea during late 2023 and early 2024, driven by geopolitical tensions, compelled significant shipping routes to reroute around Africa, highlighting a considerable weakness for long-distance, low-inventory just-in-time supply chains. As a result of this crisis, The United Nations Conference on Trade and Development (UNCTAD) noted a 35% rise in supply chain lead times.

Production Line Crates

Lack of Preparation

Implementing a JIT model will force the business to switch its entire workflow to a lean framework, which will affect the entire organisation and the supply chain. Each is likely to have to change some of their procedures or practices, or all of them. It could be difficult, not to mention costly, to carry out such an extensive overhaul.

Potential Missed Opprtunities

The company will have few or no unfinished goods on hand. If a large or unexpected order comes in, the manufacturer might not be able to cope adequately with it. The major reliance on forecasting also makes it difficult to adapt to unexpected demands.

Unforseen Price Changes

JIT production faces constant costs for parts. If costs increase, the company’s profit margins will drop.

Production Line Batch Production Cookies

Pressures of Time

Time is of the essence in JIT production. Companies that implement the system face significant pressures of time. The scheduling can affect the cost of goods sold, too. The company has no guarantee it will get the best price when buying raw materials from a supplier.

Cost of Local Sourcing

Part of JIT production’s efficiency lies in reliance on local suppliers so that it can power forward with production and get items out to customers sooner. For different reasons, sourcing locally can cost more. Unfortunately, for a manufacturer working with a JIT model, this pursuit of reliability and efficiency can eat into their profits.

Acts of Nature

Acts of nature that interfere with the flow of goods can bring production to a halt. Ultimately, this is a risk that many manufacturing businesses face, whether they’re implementing a JIT model or otherwise.


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Production Line Metal Cans

how JIT was born?

the history of JIT

It appears that this style of manufacturing was born in Japan. Although there is confusion as to when it actually came about, JIT is thought to have developed around the 1960s or 1970s.

A book by Taiichi Ohno on the Toyota Production System suggests that early Toyota experiments improved plant productivity by over 50% between 1950-1970, utilising what was the beginning of JIT practices.

Just like manufacturers in many other countries, those in Japan came up against some major challenges following World War II. Lack of cash to finance huge purchases of inventory the way other manufacturers did; lack of warehouses and storage spaces; lack of natural resources; high levels of unemployment; these were all obstacles that had emerged in the post-war period.

Japanese manufacturers wrestled with all these problems until car manufacturer Toyota came up with a solution. (The Western media dubbed the method the ‘Toyota Production Method’.) Manufacturers then began building smaller factories, and these factories concentrated on transforming small amounts of raw materials into goods quickly. At the same time as reducing the businesses’ financial risk, processing these smaller batches enabled them to generate sustainable amounts of working capital.

the applications of JIT

As we’ve mentioned above, the JIT model is extremely common in the automotive sector, one of the most famous examples being Toyota, but you’ll also encounter implementation of JIT principles in computing and in the fast-food industry. Other types of companies that have benefited from the JIT model include retail, restaurants, on-demand publishing and tech manufacturing.

Both small businesses and large companies alike can make use of the JIT model and benefit from it, as JIT improves cash flow and reduces the capital necessary to run the business. Below we provide a few examples of companies who are applying JIT:

Toyota Logo JIT

Toyota

As the pioneer of JIT, Toyota is the clearest example. The company doesn’t bring any raw materials to the production floor until a business places an order with them and the product is ready to be built. During production, the manufacturer won’t keep any parts in the next production node or station unless they’re required.

Accurate forecasting is important to the company to maintain stock at the right levels. Toyota also only keeps small amounts of raw materials at each production station, replenishing it once they’ve used it so that they always have enough material to start production at any time.

Toyota was the first car manufacturer globally to reach an annual production of over 10 million vehicles, whilst utilising JIT production. As of September 2023, their cumulative production hit 300 million vehicles.

Apple Logo JIT

Apple

Apple makes the most of JIT principles by leveraging their suppliers to get JIT working for them. The company has built strong, strategic relationships with its vendors and made outsourcing production a success. Outsourcing has helped Apple to cut costs and stop them from overstocking.

A lot of inventory is already in their stores as well. Suppliers’ willingness to keep inventory on hand, plus the company’s stores’ holding of inventory, have been important elements in Apple’s success.

By utilising JIT, Apple turnover inventory every 11 days, which is one of the fastest in electronics manufacturing. Apple's dominance in this market is highlighted by their competitors turnover rates. Lenovo's inventory turnover stands at 51 days, and HP is 68 days.

Mcdonalds Logo JIT

McDonald's

Fast chain company McDonald’s is a famous food business that applies JIT methodology. The restaurants have everything they need on hand but, with the exception of a few finished products at peak times, don’t make anything until they’ve received the customer’s order.

This standardised process enables McDonald’s to deliver a consistent experience for its customers. The chain delivers customer satisfaction, too, because the food is always fresh.

All the while, servers will be keeping an eye on the rack to ensure that the quantity of burgers doesn’t get too low as the customers make their orders. If the inventory gets too low, the manager orders more ground beef so that the restaurant can continue to produce burgers. Ultimately, the customer triggers a chain of demand that encourages a pull of materials through the system.

Dell Logo JIT

Dell

Computing equipment manufacturer Dell is another strong example of a successful JIT application.

Dell began offering customised computers for consumers in the 1990s because the company wouldn’t stock raw materials until someone had placed an order with them. They could order the materials, build the product to the customer’s exact specifications and then deliver faster than companies who had pre-built computers.

lean manufacturing

Often, you’ll see the concepts of ‘just in time’ production or manufacturing and ‘lean manufacturing’ used interchangeably, but they’re not quite the same thing.

JIT production concentrates on efficiency, whereas lean manufacturing channels its energies into using efficiency to add value for the customer.

You could think of lean manufacturing as being more customer-centric, whereas JIT production is more business-centric. Each step in the lean manufacturing process must create some sort of extra value for the customer.

Case studies from a range of industries highlight that lean manufacturing can help businesses achieve up to 40% cost reduction, and 50% gain in productivity.

The first step in the lean manufacturing process

The first important step in lean manufacturing is to understand the true value of the product for the customer. If, for instance, the customer is wishing to buy a stereo speaker, they’re likely to be looking for good sound quality, durability and affordability.

Wood Sheet Production

Understanding the value stream

Step two is to examine all the different activities in the lean manufacturing process and determine which ones add value and which ones don’t.

Continuing with the speaker's example, the use of high-quality parts would bring value to the product by working towards sound quality and durability, whereas transporting them from some remote warehouse would not. Switching to a JIT process would then add value by increasing efficiency and, because the manufacturer is reducing transportation costs, make the product more affordable.

When Lean Manufacturing and JIT Production Become the Same

Once the manufacturer has stripped this value stream of everything that doesn’t add value, the lean manufacturing process should become more or less the same as a JIT one. That’s because the next step in the process is to only manufacture what the customer orders.

This is the ‘pull’ part of the process and drives production. Ordering new parts short term is JIT, but remember that the focus in this style of production isn’t on driving efficiency to cut costs, but to increase value for the customer.

is JIT right for my business?

Switching to a JIT model can, as mentioned, be expensive and create a great deal of upheaval in the business because it can be hard to implement. Before taking the leap and employing JIT for your business, you should consider the following aspects:

  • Turnarounds: Can I manufacture my products or supply them quickly?
  • Forecasting: Are my sales forecasting good enough to predict rising and falling demand, including seasonality, accurately
  • Flexibility: Are my manufacturing and supply chain flexible enough to adapt to supplier disruptions, natural disasters and other disruptions?
  • Sellers and suppliers: Are my suppliers reliable? Will they deliver on time, every time?
  • Workforce: A JIT system must have the support of all the operational divisions, especially the employees, who must be cross-trained, multifunctional and able to perform several duties. They must be able to fill in where and when the production line calls for it. Are the employees fully trained and fully committed to the process?
  • Technology: Does the inventory management software support a JIT management system?
  • Automation: According to the Manufacturing Leadership Council (MLC), 70% of manufacturers still collect data manually. Manual data processes are too slow and error-prone to support the precise timing required by JIT
Production Line Metal Cans (1)

JIT production offers business significant advantages, but the company must apply it skillfully to succeed. Failure to do so can create a range of difficulties that, ultimately, can damage the business.

If you’d like to find out more about how our JIT systems can combine with your JIT production or manufacturing, contact us for a chat with one of our sales teams or our customer service team. We’ll be happy to help.

when JIT is not recommended

Just-in-time production eliminates buffers, reduces inventory costs, and enhances flow. However, it may not be suitable for every operation. JIT depends on stable, predictable, and uninterrupted supply chains.

It has been recently reported that global supply-chain disruptions rose by 38% in 2024 compared 2023 (Resilinc, 2025).

If your business experiences frequent fluctuations, unreliable lead times, or high demand volatility, maintaining minimal inventory can elevate risk instead of decreasing it. Prior to implementing JIT, evaluate your supply chain resilience, supplier dependability, and operational maturity to make sure the model enhances productivity and continuity.

JIT may not be recommended when:

  • Supply chains are unstable: Regular delays, unpredictable lead times, or restricted transport capacity elevate the likelihood of interruptions.
  • Supplier reliability is low: When suppliers frequently fail to meet delivery deadlines or exhibit inconsistent quality, Just-In-Time (JIT) methods magnify the consequences of each mistake. In 2024, 60% of manufacturing and construction businesses experienced supply chain delays, posing a risk for JIT implementation
  • Safety stock is legally or operationally required: Sectors that have regulatory stocking mandates (such as pharmaceuticals or essential spare parts) are unable to remove buffers.
  • There is limited production flexibility: Businesses that cannot promptly modify their schedules, production capacities, or batch sizes might experience downtime when using Just-In-Time (JIT) systems.
  • The business lacks data visibility and automation: If accurate forecasting, real-time inventory monitoring, and strong collaboration with suppliers are lacking, Just-In-Time (JIT) becomes vulnerable.
MM Packaging Slipchain (1)

JIT automation

Just-in-Time (JIT) production is effective only when information, materials, and processes flow smoothly without interruptions. Automation enhances JIT by increasing speed, precision, and reliability throughout the supply chain, from forecasting and scheduling to internal material handling and outbound logistics.

Contemporary JIT systems features automation, real-time inventory tracking, automated picking processes, predictive maintenance, and automated loading systems, all collaborating to minimise human errors and avert production delays.

JIT depends on eliminating bottlenecks at the loading dock. Our Automated Trailer Loading Systems (ATLS) automate the final stage of material movement (the trailer loading process),ensuring components and finished goods flow from production lines to trailers without delay.

Automated Loading helps JIT operations:

With the increase in disruptions (global supply-chain incidents increased 38% in 2024), it is crucial to implement automation to maintain the predictability, resilience, and cost-effectiveness of Just-In-Time (JIT) operations.

Joloda Hydraroll solutions and the automotive industry

We work with several different car manufacturers, such as Nissan, Honda, BMW, Mercedes and others to help them deliver a JIT process to their assembly.  A separate manufacturing plant creates the parts and then shuttles them to the assembly plant.

If your business is about to implement JIT production, you can choose one of our JIT systems, automated loading solutions to help you get the parts to the line at the right time. Bulky doors, batteries and other parts can be heavy, and our solutions can assist you in handling these materials more comfortably and safely, as well as working towards greater efficiency in your process.

Using an Automated Loading System in the Automotive industry can help:

  • Load trailers in 2 minutes
  • Operate with 1 employee
  • Eliminate product damage
  • Improve safety
  • ROI in 2-3 years
  • Trailer space optimisation

Using our Automated Loading Solutions helps your manufacturing process remain efficient. Three main solutions that are good for the task are:

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Moving Floor Tyres

JIT Automated Loading System

moving floor

The Moving Floor JIT system is ideal for businesses in the automotive industry, allowing them to load and unload palletised goods or unpalletised ones safely and efficiently. It’s heavy-duty and is excellent for helping the business unload or load tyres so they can get them to the right part of the assembly plant. 

The automation also minimises any damage to the parts, which is important for successful JIT production.


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Trailerskate (6)

JIT Automated Loading System

slipchain

The Slipchain system is durable and modular so that you only have to make a minimal amount of changes to trailers or existing structures. It connects directly with production line conveyors, or you can load cargo onto the system using an automated guided vehicle (AGV) or forklift truck.

Like the moving floor system, it’s a heavy-duty JIT system, allowing you to transfer pallets and allows you to conduct high volumes of loading and unloading in complete safety.


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Slipchain 10

JIT Automated Loading System

trailerskate

The Trailerskate system serves many different businesses reliably and works well with businesses that employ a JIT system because of its ability to boost productivity and efficiency. It’s a simple system in which four tracks sit on the floor of the trailer and the skates take care of the loading and unloading, with the lift itself coming from the track underneath.

You can combine the Trailerskate with existing conveyor systems or AGVs for 100% end of line automation. Loading is extremely safe, even when working with high volumes, and there will be no damage to the materials being loaded.


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Moving Floor

a case study of our work with Eurofit tyres

Eurofit, a partner in tyre and wheel assembly, is just one of the prominent companies we’ve supported in the industry. Automation plays a vital role in their operations, and they approached us for a system capable of handling various non-standard loads in their European factories, enabling the transfer of goods from manufacturing facilities to vehicles.

The Moving Floor Conveyor was particularly instrumental in fulfilling the company's needs. Eurofit aimed to reduce human involvement in the loading and unloading processes, which the system successfully accomplished for them. The versatility of the moving floor conveyor enables the company to connect it with production lines or use forklifts to load tyres and wheels onto the conveyor, preparing them for transfer. 


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frequently asked questions (FAQ)

What Is JIT Production and How Does It Work?

Just-in-Time (JIT) production is a manufacturing and inventory strategy where materials, components, and finished goods are produced only when needed, in the exact quantity required.

JIT works by synchronising production schedules with real-time demand. Materials arrive shortly before they are used, processes are tightly sequenced, and workflows are designed to avoid delays, overproduction, or excess inventory.

What are the Advantages and Disadvantages of JIT Production?

Advantages:

  • Lower inventory costs by reducing the need for large stockpiles.
  • Reduced waste because materials are only produced and ordered when needed.
  • Faster production flow, thanks to smoother, more predictable operations.
  • Higher product quality through tighter process control.
  • Better use of space as less room is required for storing goods.

Disadvantages:

  • Vulnerability to supply-chain disruptions, since buffers are minimised.
  • Increased reliance on supplier reliability and transport consistency.
  • Higher exposure to delays caused by equipment breakdowns or bottlenecks.
  • Less flexibility when demand surges unexpectedly or fluctuates.
  • Risk of halting production if even a single upstream process fails.

How Does Automation Support Just-in-Time Production?

Automation strengthens JIT by increasing speed, accuracy, and reliability across the entire supply chain.

Key ways automation supports JIT include:

  • Real-time inventory tracking that alerts teams to shortages before they occur.
  • Automated picking and sequencing, ensuring components arrive at the line in the right order.
  • Predictive maintenance, reducing unplanned downtime that would disrupt a JIT system.
  • Automated loading and unloading, ensuring trailers are turned around quickly without manual bottlenecks.

Our Automated Trailer Loading Systems (ATLS) streamline the final stage of material flow by automating trailer loading, reducing human error, and maintaining consistency, all of which are essential for a high-performance JIT workflow.

What Businesses or Industries are Best Suited to JIT Production?

JIT is most effective in industries with predictable demand, stable supply chains, and repetitive production processes. These include:

  • Automotive manufacturing: highly sequenced, predictable component flow.
  • Consumer electronics: tight production schedules with rapid assembly lines.
  • Apparel and footwear: predictable seasonal cycles and fast turnaround needs.
  • Food and quick-service restaurants: perishable goods and high throughput.
  • Industrial machinery and engineered products: where precision and timing are critical.

Industries with high-volume, high-frequency shipments benefit even more from automated loading systems. That’s why many automotive and FMCG facilities integrate these systems directly into their JIT logistics workflows.

When is JIT NOT Recommended?

JIT is not suitable in environments where reliability cannot be guaranteed. It may not be recommended if:

  • Supply chains are unstable or experience frequent delays.
  • Suppliers cannot guarantee consistent quality or on-time delivery.
  • Regulations require minimum stock levels (e.g., pharmaceuticals, spare parts).
  • Demand is highly volatile or unpredictable.
  • Production cannot quickly adjust schedules or batch sizes.
  • The business lacks automation, data visibility, or accurate forecasting.

In these scenarios, operating with minimal inventory creates higher operational risk, and implementing solutions like automated loading can help reduce some of the instability.

What is The Difference Between JIT and Lean Manufacturing?

Although closely related, JIT and lean manufacturing are not the same:

JIT Production

Lean Manufacturing

Focuses on timing: producing only what is needed, when needed

Focuses on reducing waste and increasing value

Relies on precise scheduling and inventory reduction

Uses continuous improvement tools (Kaizen, 5S, Value Stream Mapping)

Main goal: improve flow and reduce inventory

Main goal: eliminate any activity that doesn’t add value

JIT is one component of Lean

Lean is the wider philosophy

In practice, most modern manufacturers implement both together. Automation supports both approaches by removing waste, delays, and manual bottlenecks.

What is an Example of JIT In Real-world Operations?

A well-known example is Toyota, the company that pioneered JIT in the 1970s. Toyota produces components in exact quantities based on real-time demand signals, coordinating tightly with suppliers to minimise inventory across the entire supply chain.

Another example is McDonald’s, which prepares items only when orders are placed, reducing waste and shortening service times.

Modern distribution centres applying JIT also integrate Automated Trailer Loading Systems to ensure finished goods move from production lines to outbound trailers without delays, maintaining the precise timing JIT requires.

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