What is JIT (Just-In-Time) in Retail? Explained

In retail, Just-In-Time (JIT) is a supply chain management strategy where goods are ordered and received only as they are needed for the production process or to meet customer demand. This approach minimizes inventory holding costs and reduces the risk of excess or obsolete inventory. Retailers using JIT aim to enhance efficiency, reduce waste, and respond quickly to changes in customer preferences. JIT requires precise coordination with suppliers, reliable logistics, and a responsive production system to ensure that products arrive exactly when needed, optimizing the balance between supply and demand.