Just in time
Also called: jit
Just in time (JIT) is a logistics principle that means the customer gets what was agreed upon, exactly at the time promised. Products should not be delivered late, but if they are delivered too early it means that the organization has excess production, inventory and/or transportation capacity. Aligning production, inventory and distribution properly with each other and with market demand results in cost reduction.
JIT originated in Japan and is used in the automotive industry, among others. Cars are built from parts made in different factories and then sold around the world. By making this process as efficient as possible, profits can be maximized.
Smart sourcing of raw materials, coordinating separate processes and working with limited inventory are JIT success factors. We see this principle a lot within e-commerce as well.