Definition
With the just-in-time strategy, the entire material flow is organised in such a way that it is precisely timed to the production process. Important preliminary products are delivered only a short time before they are used. This allows the company to reduce its storage costs because parts do not take up capacity in the warehouse for weeks. In addition, no capital needs to be tied up in pre-products because they are processed directly. Just-in-time makes it possible to keep the entire value-added process much leaner and more cost-efficient.
At the same time, companies can react more quickly to market changes. If, for example, new products are in demand, old stock does not have to be reduced first. In order to benefit from these advantages, producer and supplier must enter into a close relationship. The producer's dependence on the supplier increases to a not inconsiderable extent.
Bettina Dirks
