Just-in-time inventory management is a philosophy rather than a strict set of rules. What are the key features of just-in-time inventory systems? Investment in technology has allowed countries like the US, the UK, and Japan to remain relevant in worldwide manufacturing.Īdvanced machinery and lean manufacturing software modernized JIT inventory management, so it kept its competitive edge. Companies across the globe have adopted just-in-time inventory systems to replicate this success. The results spoke for themselves, and people paid attention when Japanese manufacturing started to become competitive in the 1970s.įast-forward to 2022 - Japan is in the top six countries for manufacturing competitiveness and is projected to stay there in 2023. They also adopted the best practices from the US, including Ford’s moving assembly line. ![]() ![]() Less capital tied up with carrying inventory allowed these businesses to be more flexible. They built smaller factories that only kept the raw material inventory needed for existing orders. Pioneers stepped up to develop ways to lean up their inventory management completely. Isolated Japan needed to get its economy going ASAP. There was no reason to hold back, so they favored large-scale mass production. The philosophy of the day was “more is better.” Not to mention demand was sky-high, so products were flying out of the door. Meanwhile, in the USA, business was booming.Įverything was in abundance, as they were relatively untouched by the war. It seemed impossible to build up any momentum to overcome this. ![]() They had to deal with high levels of unemployment and an extreme lack of space and natural resources. In the wake of WWII, Japan was in a dire situation - most of its factories had been destroyed. The history of the just-in-time inventory
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