Just-in-time (JIT) inventory is a supply chain strategy used by some franchise systems to reduce inventory costs and increase efficiency. With this model, franchisees receive inventory only as needed to meet demand, which limits storage requirements and reduces waste. While JIT inventory can be cost-effective, it requires reliable supplier relationships and accurate demand forecasting. Franchisees considering this model should assess the logistics support provided by the franchisor and understand potential risks, such as supply chain delays.
Just-in-Time Inventory
This term
Just-in-time inventory is a strategy that minimizes stock by receiving goods only when needed.
Joe Bailey
Lead Franchise Advisor & Owner
At Franchise Reports, the goal is simple: help you find better franchises.
