What does "just-in-time" (JIT) delivery aim to achieve in supply chain management?

The concept of "just-in-time" (JIT) delivery is primarily focused on optimizing inventory management and reducing waste within the supply chain. By receiving goods only as they are needed for production or delivery, JIT aims to minimize the holding costs associated with excess inventory. This practice enhances efficiency by ensuring that materials and components arrive precisely when required, eliminating the need for large storage spaces and reducing the risk of obsolescence.

Additionally, JIT helps in improving the overall flow of materials through the supply chain, as it enables companies to respond more agilely to customer demands and changes in the market. This responsiveness can lead to cost savings and increased customer satisfaction due to timely deliveries of products. In essence, JIT fosters a streamlined and efficient supply chain system that prioritizes just the necessary amount of resources at the right time, aligning perfectly with the principles of lean management.