What types of product would benefit from just in time inventory strategy?

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Just-in-Time Manufacturing was a system designed to be universal in its application. It was originally applied to cars in order to reduce inventory and warehousing costs and ensure that money wasn't wasted on stockpiling excess inventory that might never be used. It enables companies to do a better job of matching inputs and outputs.

One type of product for which this is especially important is "fast fashion." With such companies changing stocks in retail stores every few weeks rather than seasonally, stockpiling materials in warehouses would guarantee that many would become obsolete rather than ever being used, as the fabric in fashion one week might not be in fashion the next week. On the finished product end, a fast fashion company needs to produce only what will be sold within the next few weeks rather than having a large inventory of clothing sitting in warehouses which might no longer be fashionable.

Any industry that has products that change quickly in response to consumer tastes needs an efficient supply chain and production that is closely tied to sales and thus is potentially a good candidate for just-in-time manufacturing.

For many companies, there is also a tax benefit to maintaining low inventories.

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