Just-in-time is an approach that schedules the arrival or production of goods close to when they are required, limiting unnecessary inventory.
How it works in retail
It depends on coordination, dependable processes and visibility into demand and supply. In retail, frequent replenishment can reduce the quantity held at a location.
A retail example
A shop receives small, frequent replenishment deliveries instead of storing a large seasonal quantity of a predictable basic.
What to keep in mind
Lower stock buffers can increase exposure to disruption. JIT is an operating approach, not a guarantee that inventory can be eliminated.
Examples are illustrative. Terminology and measurement conventions can vary by business and market.