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manufacturing process. Regarding that situation, the customer becomes the priority of the
company and feels satisfied with the company’s services.
The cost of company’s operation is reduced; thus, the profit margin inclines. JIT will
facilitate the reduction of raw materials, work in progress, and the finished goods inventories.
The space the company could have had occupied is freed. Therefore, holding and rental costs
which the company would incur when it stores the inventory declines (Lai and Cheng 20). The
human resource cost that the organization could deploy to work in the warehouses guarding and
keeping it in order is eliminated. JIT uses the technique of holding the production parts in
containers. Hence, the identification, as well as the monitoring of inventory levels, is simplified.
When a particular customer’s order is finished, it is packed in a specific container and stored
waiting for shipment. Thus, confusion of clients who demand goods is eliminated, therefore
increasing customer loyalty along with high confidence and at the same time freeing space as
soon as shipment process starts.
Moreover, the concept is useful as it will promote the firm's competitiveness against the
rivals both in the long and in the short term. JIT facilitates the organizational competitiveness as
it develops an optimal process of manufacturing its commodities (Lai and Cheng 44). Notably,
there are variances between organization's conventional as well as progressive methods. The
traditional firm has a rigid production process and cannot change with demand dynamics, while
the progressive business is flexible and can vary the process depending on the customers’ change
of demand anytime. For this reason, JIT supports a progressive organization since it can quickly
adapt to the environmental changes.
In conclusion, JIT is a vital concept in inventory management as it offers countable
benefits for the business. The first merit is satisfying customers by producing tailor-made
