Just in Time refers to a business model where the business
produces/sources based on the confirmed order by a customer, i.e. production
happens ‘just in time’.
RATIONALE
Challenging the traditional and more accepted production
strategy of designing a few models and pushing them to the customer, the JIT model
is able to produce based on customer requirement. This customer pull based
model is able to offer better customization to the customer, thereby enhancing
customer experience and satisfaction. The basic rationale is – Not all
customers are the same, so not all of them should be sold the same product.
STARTUP EXAMPLE
Dell
– Dell is the company which has used the JIT model and has combined it with
some marketing hacks to create the most dynamic and robust businesses we see
today in the PC space. Dell has been able to cut down costs due to low inventory
levels and a direct selling strategy, and has passed on these savings to the
end customer.
Great
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