The “Just-in-Time” (JIT) strategy originated in the manufacturing industry as a method aimed at minimizing waste and enhancing operational efficiency. This innovative approach focuses on producing and delivering goods only as they are needed in the production process, thereby reducing costs associated with excess inventory and storage. Over time, the JIT methodology gained traction and began to be adopted across various industries worldwide, including retail and healthcare.
This strategy worked well, but only if these certain conditions were true:
| Assumption | Why it matters |
|---|---|
| Reliable suppliers | Deliveries must be consistent |
| Stable transportation | No delays at ports, roads, etc. |
| Predictable demand | Accurate forecasting is critical |
| Global access | Imports arrive smoothly |
| Strong IT systems | Real-time visibility into inventory |
For years, these mostly held true, and the JIT process dominated despite risks, due to cost reduction being prioritized over resilience, disruptions being historically rare, and less inventory equaling better management.
Post-pandemic, this process is now under pressure, because healthcare has learned that efficiency and resilience are not the same thing. Here’s why it’s struggling:
- Demand in healthcare is inherently uneven and hard to forecast
- Reliable demand signals don’t exist to support true JIT
- Resilience has moved to the top of the leadership agenda
- The model is shifting from lean to adaptive
So, does that mean stockpiling every medical item? Not realistically. Instead, health systems are shifting to a hybrid approach – applying “Just-in-Case” (JIC) principles to high-risk, critical supplies, while maintaining JIT for fast-moving, easily replaceable items. This balance reflects the realities of modern healthcare: ensuring the right products are available when needed, even amid ongoing supply disruptions.
The “Just-in-Case” model offers several advantages:
- Prevents critical supply shortages
- Acts as a “shock absorber” for disruptions
- Reduces operational chaos
- Enables better emergency preparedness
- Supports continuity of care
- Reduces dependence on “perfect” suppliers
- Improves system resilience
Together, JIT and JIC give operations teams the ability to better manage supplier disruptions across a wide range of categories. In large health systems, this is especially important – products can be shifted between sites to meet demand and avoid shortages. When combined with approaches like central distribution and smarter channel management, teams gain more control over how inventory is sourced, stored, and deployed. Instead of relying on a single supply path or reacting to issues as they arise, organizations can actively rebalance supply across the system and maintain continuity with greater consistency.
