Just-in-Time (JIT) Inventory
Definition
Ordering inventory so it arrives right when you need it, keeping stock levels low to free up cash and storage.
Want a deeper explanation?
JIT works best with short, reliable lead times. For brands importing from overseas with 60 to 120 day lead times, pure JIT is rarely realistic.
The principle still applies: hold as little as you safely can. Watch for: cutting stock levels without adding safety stock, which trades holding cost for stockouts and lost rankings.
Example
A brand with a domestic supplier and a 7-day lead time keeps only two weeks of stock on hand, instead of the four months it would need when importing.