Just-in-Time (JIT) inventory is a lean manufacturing strategy that aims to reduce waste by receiving goods only when they’re needed. It sounds efficient—and it is—but it’s not always the right fit for every job shop. In this post, we’ll break down what JIT really is, when it works, when it backfires, and how you can apply it smartly in your shop.
1. JIT Can Save Money—If Your Workflow Supports It
At its best, JIT helps reduce carrying costs by ensuring you’re only stocking what you’re actively using. That means less capital tied up in inventory and more floor space for actual production.
Key benefits of JIT:
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Lower storage costs
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Reduced material waste and obsolescence
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Smoother cash flow with less money sitting on shelves
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Less clutter and better use of shop space
But… JIT only works if your workflow, supplier lead times, and job planning are highly reliable. If your shop often works on unpredictable, short-notice jobs, a pure JIT model could leave you constantly scrambling.
2. When JIT Can Hurt Your Operations
JIT comes with risks—especially in today’s supply chain climate. If you don’t maintain buffer zones for critical parts, a single late delivery can halt an entire job or even a full production line.
Warning signs that JIT might not work well for you:
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You have unreliable or overseas suppliers
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Your customers frequently place urgent or unplanned orders
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Lead times are inconsistent or hard to predict
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You’re often placing last-minute rush orders (and paying extra for them)
How to protect yourself:
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Build a small buffer stock for your most critical or slow-to-arrive items
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Diversify suppliers or source locally when possible
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Use demand forecasting tools to better plan ahead
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Set reorder points based on actual usage trends, not estimates
3. Hybrid Inventory Strategies Are Often the Sweet Spot
Most shops don’t need to go “all in” on JIT. Instead, they benefit from applying lean principles where it makes sense and keeping safety stock where the risks are too high.
Try this hybrid approach:
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Apply JIT to:
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Commonly used consumables
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Easily sourced raw materials
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Parts with short, reliable lead times
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Use safety stock for:
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Custom or made-to-order components
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High-cost tooling
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Parts with long procurement cycles
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Monitor performance:
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Track downtime due to missing inventory
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Measure how often jobs are delayed due to supply gaps
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Evaluate how much you’re spending on emergency orders
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JIT can be a powerful tool—but only when used strategically. By adopting a hybrid model that’s built around your actual usage and supplier reliability, you can cut waste without cutting corners.
ShopXpert’s smart vending system makes lean inventory simple. Automatically track stock levels, link tools to jobs, and reorder only what’s needed—when it’s needed.
👉 [Start Managing Inventory Smarter]
