Have you come across the term ‘Just In Time’ (JIT)’? If you haven’t, you’re just in luck today and by the time you are done reading this piece, you would understand better how it improves efficiency and reduces cost in the logistics and supply chain industry.

1. What is Just In Time?

Just In Time (JIT) is a warehousing and inventory management system that focuses on three main things/processes:

i. What is needed e.g. goods, raw materials

ii. When it is needed

iii. What quantity is needed

2. How does this work? Raw materials or goods are only ordered for manufacturing processes and delivery when they are ordered by the customers as opposed to storing away in warehouses until they are needed (which might not also occur, thereby overstocking). 

3. Success Stories from the JIT System?

Familiar with the popular car manufacturing brand, Toyota?

Toyota adopted the JIT system in the 1970s and the JIT system was also termed after the brand which is also known as the Toyota Production System (TPS). Toyota deploys the JIT system by ensuring that raw materials are not brought to the production floor until the order is received from the customer and the product is ready to be built. This helps to minimise cost by ensuring that only raw materials (inventory) needed is what is being requested for. The JIT system also helps to eliminate waste of excess raw materials and the end result being a cost reduction for the company.

The JIT system also helps companies to forecast demand accurately which helps in efficient and effective customer delivery.   

4. What are the advantages of the JIT System?

i. Less warehousing or storage space: Since you would only be required to stock as the need arises.

ii. Elimination of waste of raw materials or goods

iii. Increased efficiency

iv. Cost reduction: With raw materials/goods being ordered only as they are needed this helps to reduce unnecessary stock at the warehouse and helps to increase cash flow for the company.

The Way Forward with the adoption of ‘Just In Time System’ for my Company?

Now that you have decided to adopt the JIT system, you would need a logistics company to support you with the processes and procedures.  TGL is a logistics management company whose vision is to redefine the concept of service delivery in the logistics business primarily in Nigeria and Africa.

TGL would ensure company is supported with the end-to-end process of JIT.

We would also support you with freight forwarding, out-country and in-country logistics to ensure that your consumer stays satisfied till the end of the production or supply chain process.


Phone Number: 0804 TGL DESK

Address: 68 Molade Okoya Thomas Street, Off Ajose Adeogun Street, Victoria Island, Lagos

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