Just In Time (JIT) is a production and inventory management philosophy — pioneered by Toyota as part of the Toyota Production System (TPS) — in which raw materials, components, and sub-assemblies are ordered and received exactly when they are needed in the production process, and finished goods are produced only in response to actual customer demand, rather than being stockpiled in advance. JIT minimises inventory holding costs, reduces waste, improves production efficiency, and frees up working capital by keeping inventory levels at or near zero at each stage of the supply chain. However, JIT creates supply chain vulnerability to disruptions — as demonstrated during the COVID-19 pandemic, when global supply chain shocks caused severe production stoppages for JIT-dependent manufacturers. For equity analysts on Ventura Securities evaluating auto, electronics, and manufacturing companies, the JIT model's efficiency benefits must be weighed against supply chain resilience risk — a trade-off that became a central focus of global supply chain strategy reassessment in the post-pandemic era.
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