How To Use Just-in-Time Inventory to Increase Profit 🗂️
Andrew Figgins
Founder, AOV Lab . December 15, 2023

Key Takeaways 🌟:
- Just-in-Time Inventory: Discover how JIT can minimize costs and enhance supply chain efficiency.
- Demand Forecasting: Learn how to accurately predict your inventory needs.
- Automated Replenishment: Save time and improve accuracy with automated systems.
Introduction to Just-In-Time Inventory 📖
Managing inventory is a juggling act in the ecommerce world. Too much inventory can lead to high carrying costs, while too little can result in stock-outs. The key to optimize supply chain efficiency lies in effective inventory management. Let’s explore how.
Strategy 1: Just-In-Time Inventory 🕒
On-the-Spot Efficiency 🎯
Just-In-Time (JIT) inventory management helps maintain optimal stock levels by ordering products as they’re needed. Consider how products can be quickly built to order or customized. In my past life selling medical scrubs, this included embroidered scrubs and monogrammed stethoscopes.
Implementation 🛠
Coordinate closely with your warehouse, suppliers and use real-time data analytics to implement JIT effectively. There are efficiencies to be found throughout the supply and fulfillment chain, to shift and support the real-time build model.
Key Metrics 📊
Focus on metrics like stock turnover rate, carrying costs, and stockout rates. A key to consider for personalization is that static/standard logos often require $0 carrying cost, yet can deliver between $5-15 per application.
Strategy 2: Demand Forecasting 📈
Predict to Prepare 🎯
Using demand forecasting algorithms can give you an accurate picture of future stock needs, helping you optimize supply chain efficiency.
Implementation 🛠
Utilize machine learning algorithms and historical data to forecast demand with precision. At Scrubs & Beyond, for instance, past embroidery and monogramming percentages were often used to predict or model out future demand.
Key Metrics 📊
Keep an eye on forecast accuracy, Mean Absolute Percentage Error (MAPE), and out-of-stock rates.
Strategy 3: Automated Replenishment 🤖
Let Tech Take Over 🎮
Automated replenishment systems take the guesswork out of inventory management, adjusting your stock based on real-time demand and sales trends.
Implementation 🛠
Implement software that integrates with your POS and warehouse management system for seamless automated replenishment.
Key Metrics 📊
Monitor replenishment accuracy, time saved on manual tasks, and stock availability rates.
Conclusion 📝
Mastering inventory management can significantly optimize your supply chain, reduce costs, and enhance customer satisfaction. As ecommerce continues to evolve, so must your inventory management strategies.
References 📚
- “Just-In-Time Inventory Management” by Supply Chain Management Review
- “Demand Forecasting in the Age of Big Data” by Journal of Business Logistics
Deep Dive
Related articles
How To Enhance Revenue with Effective Augmented Reality Strategies
Key Takeaways 🌟: Introduction 📖 Augmented Reality (AR) is no longer a futuristic concept; it’s a…
How To Leverage 3D Printing for Instant Home Delivery 🖨️
Key Takeaways 🌟: Introduction 📖 Why wait for delivery when you can print your purchase at…
How Mobile Wallets Dominates Secure Payments by 2030 💸
Key Takeaways 🌟: Introduction 📖 The future of secure payments is in your pocket. By 2030,…