TECH & INNOVATION

By Salil Chari | August 5, 2026

In an increasingly unpredictable world, just-in-time manufacturers need to rethink what it takes to achieve efficiency. Advanced logistics insights form the critical link between lean production and resilient supply chains.

• From extreme weather to tariff shocks, a wide range of unexpected risks can disrupt shipments and derail just-in-time production lines. 
• Manufacturing leaders are deploying intelligent tools to enhance demand forecasting and supply chain visibility.
• Beyond the factory floor, manufacturers must also strengthen the logistics strategies that support JIT production by leveraging smarter monitoring solutions and specialized expertise.

What began as a radical method pioneered by Japanese automaker Toyota has since become a global standard for production efficiency. For decades, industries have used just-in-time (JIT) manufacturing to produce goods based on customer demand, precisely timing the flow of materials to minimize inventory cost and waste. But manufacturers today face a crucial challenge: how can they stay lean and efficient while weathering increasingly unpredictable supply chain shocks?

This question first emerged during the COVID-19 pandemic, when widespread shortages triggered a shift from just-in-time to just-in-case models. Post-pandemic, however, companies have been returning to JIT inventory strategies as supply chains stabilized. Amid rising costs and weaker consumer spending intent across Asia Pacific (APAC), JIT production remains a strategic advantage that helps businesses improve cash flow and respond quickly to customer demand.

That said, JIT strategies must adapt to a new wave of supply chain risks. Extreme weather events that disrupt logistics operations are becoming more frequent and severe. Geopolitical tensions can also affect shipping routes, delaying deliveries of raw materials.

Now more than ever, it’s clear that JIT success goes beyond accurate demand forecasting and strong supplier coordination. Reliable logistics is the critical link that ensures materials arrive when and where they’re needed. While JIT strategies have always hinged on fast, flexible logistics, today’s operating environment demands more than speed and efficiency.

Moving from efficiency to agility

Many industries have adopted JIT manufacturing to drive efficiency. For example, automakers streamline production lines by shipping parts only when customers place orders, which eliminates storage costs for bulky components and frees up working capital.

In food manufacturing, an effective JIT strategy could mean ordering fresh ingredients in precise quantities based on projected demand. This minimizes waste and helps companies react quickly to new food trends.

At the same time, such efficiency undoubtedly comes with risks. Even minor disruptions can quickly ripple across supply chains. Without buffer stock, one supplier shortage or shipment delay could shut down an entire production line.

Managing this risk has become more urgent in a world where volatility is the new normal. From where we sit in global trade, one thing is clear: supply chain disruptions are becoming both more frequent and more complex. Tariffs, labor shortages, climate risks, fuel shocks, and other challenges can delay shipments and stall production, costing companies millions in unplanned downtime.

In response, manufacturers are adjusting their JIT inventory strategies to strengthen resilience. In the semiconductor industry, for instance, we’ve seen leaders diversifying chip production across localized hubs to shorten critical logistics routes and adapt flexibly to change.

This doesn’t mean businesses are abandoning efficiency. Rather, they’re rethinking how to achieve it. True efficiency is no longer about operating as lean as possible, but building the agility to continuously monitor and manage risks.

Strengthening agility through technology

New technologies like AI are now unlocking unprecedented agility in manufacturing. Take demand forecasting, a cornerstone of JIT inventory management. Unlike traditional forecasting methods, AI-powered predictive analytics can account for real-time conditions such as economic uncertainty and geopolitical developments, reducing forecasting errors by as much as 50%. This allows JIT manufacturers to respond agilely when disruptions impact demand.

Digitalization is also transforming another key pillar of JIT manufacturing: supplier coordination. Data analytics platforms, combined with smart sensor networks and digital supplier integration, allow manufacturers to track warehouse stock and supplier deliveries in real time. Meanwhile, suppliers gain live visibility into production schedules and consumption rates, driving more agile coordination.

The digitalization journey of Toyota – widely recognized as the pioneer of JIT manufacturing – offers valuable insight into the future of this production model. The automotive leader has emphasized that in an era of volatility, JIT remains a competitive advantage rather than a risk.

By keeping inventory lean, Toyota can detect and solve supply chain issues early. This capability goes hand-in-hand with digitalization, which the automaker is leveraging to build end-to-end visibility across its supply chain. As JC Deville, the vice president of supply chain at Toyota Motor Europe, puts it: “The world will not be easier tomorrow, therefore the ability to problem-solve, fact-find, and analyze data is the way forward.”

Logistics visibility is the backbone of JIT success

Beyond demand forecasting and supplier coordination, one key enabler of agility that JIT manufacturers cannot overlook is logistics visibility. As new disruptions emerge – from climate hazards to shifting trade policies – manufacturing leaders must look beyond the factory floor and strengthen the logistics strategies that underpin JIT production.

When it comes to manufacturing logistics, milestone tracking or delivery estimates are no longer enough. Production teams need near-real-time logistics visibility to proactively anticipate disruptions and respond before issues escalate.

This level of visibility is possible with AI-powered analytics, IoT-enabled sensors, and other cutting-edge technologies. At FedEx, we’ve developed advanced visibility and monitoring solutions to give businesses greater control over time-sensitive shipments.

One example is FedEx Surround, our intelligent monitoring and intervention suite. This solution offers predictive delay alerts and weather advisories through an AI-powered dashboard, informing shippers about possible disruptions ahead of time. It can also provide near-real-time shipment visibility using SenseAware ID, a lightweight sensor that tracks and transmits location data every two seconds.

Such precision can be decisive for JIT success. It allows manufacturers to identify risks earlier, make informed decisions to minimize production delays, and protect mission-critical or high-value components. Moreover, smarter monitoring enables more agile management of shipping disruptions. With FedEx Surround, for instance, businesses can select service tiers that offer intervention support to expedite or reroute deliveries.

Simplifying just-in-time logistics with tailored support

With enhanced visibility in place, seamless collaboration across JIT supply chains becomes easier – not only between manufacturers and suppliers, but also with logistics providers.

As more manufacturers diversify across different regions to manage supply chain risk, cross-border logistics support will be especially crucial to keeping production on track. We’ve seen firsthand that manufacturers need strategic partners who understand their specific production rhythms. Tailored support can help companies strengthen their overall competitive edge by minimizing disruptions, streamlining coordination, and reducing shipping costs where possible.

Take our ongoing collaboration with a German luxury automaker, for example. The automaker has established local production facilities in China to optimize costs and respond more quickly to customer demand. As a result, its just-in-time inventory model relies on a steady flow of components from Germany and the UK to China. With short lead times and tight production schedules, this approach leaves little room for delays.

Working closely with the automaker’s cross-regional teams, FedEx’s experts have implemented proactive risk management processes. This tailored support has enhanced shipping compliance and minimized clearance delays that could disrupt assembly lines. Our digital solutions, such as the Collaborative Shipping Tool, have also enabled the automaker to streamline import processes with suppliers, distributors, and other partners.

Just in time for the future

JIT manufacturing has always relied on fast, efficient shipping to move components from suppliers to assembly lines on demand. But today, efficiency alone isn’t enough. Manufacturing leaders need greater visibility, actionable insights, and specialized support to stay ahead of disruption.

In an increasingly unpredictable world, the future of JIT success lies in agility and visibility. Now’s the time for manufacturing leaders to transform how they approach uncertainty – shifting from reactive responses to proactive resilience. At FedEx, we’re ready to help drive this shift.