In the world of supply chain management, Just-In-Time (JIT) inventory strategies have long been hailed as a cost-effective, efficient way to streamline operations. Under ideal conditions, JIT minimizes inventory holding costs, reduces waste, and keeps goods moving swiftly through the supply chain.
At L&M Warehousing and Distribution, we recognize the power of JIT—and we support clients who successfully rely on it when conditions are stable. But if the past few years have taught us anything, it’s this: storing goods locally remains a vital component of supply chain resilience.
When JIT Works Best
JIT is particularly effective when:
- Supply chains are predictable
- Lead times are short and reliable
- Transportation systems are uninterrupted
- Demand is consistent
In these conditions, goods arrive exactly when they’re needed for production or sale—no earlier, no later. Companies save money by reducing warehouse space and avoiding overstocking.
And in many industries, especially lean manufacturing and high-turnover retail, that’s a win.
What Happens When Supply Chains Are Disrupted?
However, recent global events have shown us how fragile supply chains can be. From port congestion and driver shortages to geopolitical tensions and natural disasters, delays have become more common—and more costly.
In those situations, JIT can quickly go from lean to risky. Without buffer stock or local inventory, even minor disruptions can grind operations to a halt.
That’s where local warehousing becomes a strategic advantage.
The Case for Storing Goods Locally
Even when JIT is functioning well, there’s value in a hybrid approach that includes local inventory. Here’s why:
- Faster Response to Demand: With locally stored goods, you can respond immediately to customer needs or production shifts—no waiting on delayed shipments.
- Reduced Transportation Risks: Holding goods closer to your operation helps sidestep delays at ports or in long-haul transport.
- Cost Predictability: While JIT reduces some costs, local storage protects you from surge pricing in freight or emergency shipments.
- Business Continuity: Inventory on hand acts as a buffer against the unexpected, helping keep your business running even when external factors are unpredictable.
How L&M Can Help
At L&M Warehousing and Distribution, we offer flexible storage solutions to complement your JIT strategy. Whether you need long-term storage, cross-docking, or seasonal overflow space, we provide:
- Strategically located facilities
- Real-time inventory visibility
- Reliable order fulfillment
- Scalable storage space
We believe in balancing efficiency with preparedness. JIT is powerful, but combining it with smart local storage can offer the best of both worlds: agility and resilience.
Contact us today to learn how we can support your supply chain strategy—whether you run lean, store locally, or do a bit of both.
