What is the primary objective of “just-in-time” logistics?

The primary objective of “just-in-time” logistics is to reduce inventory and increase efficiency by receiving goods only as they are needed. This approach aims to streamline the supply chain process by minimizing excess inventory, which not only reduces storage costs but also decreases the risk of obsolescence and spoilage. By aligning the arrival of materials with production schedules or customer demand, companies can enhance their operational efficiency and ensure that resources are utilized effectively. This method also promotes better cash flow management since funds are not tied up in large quantities of stock. Overall, just-in-time logistics focuses on the timely availability of products, which can lead to improved customer satisfaction and a competitive advantage in the marketplace.