What does JIT (Just-In-Time) purchasing entail?

Just-In-Time (JIT) purchasing is a strategy focused on acquiring materials and products only as they are needed in the production process, rather than stockpiling them in advance. This approach helps minimize inventory costs, reduce waste, and increase efficiency by ensuring that goods arrive just before they are required in manufacturing or service delivery. By directly linking the purchasing activity to the production schedule, organizations can streamline operations, respond more flexibly to customer demands, and maintain lower storage costs. This makes purchasing as needed for immediate production not only beneficial for managing resources but also enhances the overall workflow of the operation.