Just-in-Time Inventory
Definition
Just-in-Time (JIT) inventory is a stock management strategy where products are purchased or manufactured only as needed for customer orders.
Instead of storing large amounts of inventory, businesses aim to keep stock levels low and restock only when required.
Good or Bad?
Good if your supply chain is reliable and your sales volume is predictable.
Bad if your suppliers delay or demand suddenly spikes, leading to stockouts and missed sales.
Why Does It Matter?
This approach can help reduce storage costs and minimize waste, it also keeps your business lean and responsive to changes in demand.
However, it requires accurate inventory tracking and reliable logistics.
Common Mistakes
- Underestimating lead times from suppliers
- Not syncing stock levels with sales patterns
- Failing to set reorder alerts or thresholds
- Having no backup plan for supplier delays
- Over-relying on manual inventory checks
How to Improve It
- Set stock triggers that alert you before you run out
- Use tools that sync stock levels in real time
- Monitor sales patterns to forecast demand
- Build strong relationships with multiple suppliers
- Combine JIT with safety stock for high-demand products
Recommended Plugin
Automated Stock Update Triggers for WooCommerce
This plugin lets you automate actions when stock reaches a certain level.
It helps implement a JIT system by sending alerts or taking automated steps to restock products before they sell out.
Ideal for businesses that want to avoid overstocking while staying ready for customer orders.
Real-World Example
A print-on-demand clothing store uses JIT to keep zero inventory.
Orders trigger automated stock updates and supplier notifications via the plugin, reducing costs while ensuring timely delivery.
Related Terms
- Inventory Management
- Reorder Point
- Stock Triggers
- Lean Inventory
- Supply Chain
FAQs
Is Just-in-Time inventory suitable for small WooCommerce stores?
Yes, especially if you’re selling made-to-order or dropshipped products.
What are the risks of JIT?
Delays from suppliers or unexpected spikes in demand can lead to stockouts.
How can I automate JIT processes in WooCommerce?
Use stock trigger plugins to alert you or take action as soon as inventory drops below a threshold.
