What is Just-In-Time (JIT) Inventory?
Just-In-Time (JIT) is a production and inventory strategy where materials arrive exactly when needed for production or sale, minimising holding cost but requiring reliable suppliers and demand visibility.
JIT Principles
JIT aims for zero waste (muda): no excess inventory, no waiting, no unnecessary transport, no over-production. It requires: reliable supplier delivery (short lead times), accurate demand forecasting, flexible production capacity, and strong supplier relationships. It originated in Toyota's Production System.
JIT with ERP
ERPNext supports a JIT approach via the Production Plan — generating material requirements only when Sales Orders exist (pull-based MRP). Supplier lead times on Purchase Orders allow ERPNext to schedule procurement to arrive just before the planned production date. Reliable demand data from the CRM pipeline feeds more accurate production planning.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
Related Terms
Implement ERPNext for Your Business
Expert ERPNext implementation, customisation, and support for Indian businesses.