There are several benefits of JIT implementation, like reduced lead times, minimized cost of holding and swift time to market. However, there also exist certain potential risks, especially when it comes to smaller organizations. The proximity of suppliers and their ability to provide materials within limited notice will play a critical role in deciding the success of JIT implementation. Sometimes, minimum order policies can pose a risk to smaller manufacturers who might order smaller quantities of materials.
Agility in response to fluctuation in demand can only be enforced within reasonable limits. Sudden changes to demands driven by extraordinary circumstances can strain the manufacturing set up and supplier relationships. Seamless interaction between procurement, manufacturing, and suppliers along with other stakeholders is critical for success of JIT. If the required enterprise systems with the necessary interoperability integrations are not in place, it will be difficult to ensure just-in-time.