What is just-in-time (JIT) inventory management?

Just-in-time, abbreviated as JIT, is an inventory management strategy for maintaining the ideal stock levels. This method refers to sourcing goods from suppliers only as they are needed rather than keeping large amounts of inventory on hand. The primary objective is to reduce waste, minimize the inventory holding costs and improve the inventory turnover rate. JIT can be a highly effective inventory management strategy, but it also requires a high level of coordination and flexibility to be successful.