Just-In-Time Inventory for Your eCommerce Business


If you’re running an eCommerce business, proper inventory management is essential for scaling and staying profitable. Implementing an eCommerce just-in-time inventory (JIT) inventory system can greatly reduce the burden of managing your stock. In this blog post, we cover why businesses should prioritize JIT inventory processes as part of their strategy and discuss which tools are most suited to make it happen.

What is eCommerce just-in-time inventory?

eCommerce just-in-time inventory is a supply chain management strategy for eCommerce that concentrates on delivering products to customers when they need them to save costs, boost productivity, and minimize waste. That implies keeping just enough inventory on hand to match client demand; any extra must be immediately stored away.

Just-In-Time Inventory for Your eCommerce Business

Although JIT inventory systems are most frequently utilized in manufacturing, eCommerce companies may also adopt this strategy.

By using JIT, you might lower the number of goods in your warehouse or stockroom and only keep what you need to complete orders as quickly as possible. Because you would only need to create what is requested, this might potentially lower the cost of raw materials.

Is Just in Time worth it?

Pros of JIT inventory

  • Decreased storage costs: Since inventory is manufactured or bought on such short notice, it is unnecessary to maintain additional or unsold stock that takes up valuable inventory storage space. Costly warehouse space might result in high carrying costs for goods.
  • Enhanced communication: JIT systems only function well when there is clear communication. Teams must routinely interact to prevent issues and guarantee that the inventory system functions properly.
  • Reduced waste: JIT systems reduce the amount of waste and unneeded stock since they only produce what has recently been purchased and are driven by consumer demand.
  • Reduced expenditures in inventory: Businesses spend less on raw materials since they only purchase what they require to fulfill orders, neither more nor less. JIT lessens the need to buy huge bulk inventory batches that would result in merchandise lying around for a while. Inventory is sometimes the biggest expenditure for enterprises.
Just-In-Time Inventory for Your eCommerce Business

Cons of JIT inventory

  • eCommerce just-in-time inventory systems are challenging to deploy because there is minimal space for mistakes, which increases the likelihood that businesses will run into problems and failures before they get it right. It may be challenging to maintain inventory, especially for firms that are expanding quickly.
  • Increased chance of supply chain failure: Delays in receiving inventory or equipment failures may hurt a company’s supply chain and result in serious issues.
  • Additional preparation: Companies need precise demand projections, real-time inventory tracking, and consumer buying insights to execute JIT properly. A minor error in judgment might have a significant effect on operations.
  • Stockouts are more likely: As the JIT approach simply requires having just enough inventory, businesses can run out if there is an unforeseen increase in demand, delaying the completion of orders.
Related Posts:  Personalized Pricing Strategy in BigCommerce


Just-In-Time Inventory for Your eCommerce Business

The BigCommerce BackOrder App can help you:

  • Inform consumers about the goods that are out of stock.
  • Enable clients to order on a certain day and receive the delivery.
  • With automated processes, increase output and customer satisfaction.

In Conclusion,

A JIT system relies on data to manage incoming orders, maintain low stock levels, minimize holding costs, and create just enough buffers for unforeseen situations. So if you’re looking for the best way to stay organized and have efficient order fulfillment operations in place, implementing eCommerce just-in-time inventory with the right tool might be what your retail venture needs!

Although JIT is frequently employed in relation to inventory management, the same ideas may be utilized to optimize other parts of the supply chain. Contact us to find out more about how BackOrder can improve inventory control and order fulfillment for your company.


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