From Just-in-Time (JIT) to Just-in-Case (JIC): Adapting Supply Chains for a Volatile World

Why Just-in-Time Manufacturing No Longer Works

For decades, Just-in-Time (JIT) manufacturing was the gold standard for operational efficiency. By minimizing inventory and producing goods only as needed, companies reduced costs and streamlined operations. However, in an era marked by global disruptions, geopolitical tensions, and shifting consumer expectations, the limitations of JIT have become increasingly evident.

The Fragility of Lean Supply Chains

JIT's success hinges on the seamless coordination of supply chains. Any disruption—be it a natural disaster, political unrest, or a pandemic—can halt production. The COVID-19 pandemic starkly highlighted this vulnerability. Lockdowns and border closures led to significant delays and shortages across industries. The Suez Canal blockage in 2021 further exemplified how a single chokepoint can disrupt global trade.

Moreover, geopolitical tensions have exacerbated supply chain uncertainties. Trade wars, such as the ongoing disputes between the U.S. and China, have introduced tariffs and export controls that complicate cross-border manufacturing. These factors have made it clear that ultra-lean operations are ill-equipped to handle such unpredictability.

Case Studies: U.S. Companies Rethinking JIT

Toyota's Shift from JIT

Toyota, the pioneer of JIT, had to reassess its approach during the global semiconductor shortage. In September 2021, the automaker was forced to cut production by 40%. Recognizing the risks of minimal inventory, Toyota began stockpiling critical components, deviating from its traditional JIT model. This shift underscores the need for flexibility and buffer stocks in today's manufacturing landscape.

(Source: BBC, Hindu BusinessLine)

Apple's Diversification Strategy

Apple has long relied on a JIT approach, with a significant portion of its manufacturing based in China. However, recent challenges have prompted a strategic pivot. In April 2025, Apple’s iPhone exports from India to the U.S. surged by 76% compared to the previous year, totalling approximately 3 million units. This move aims to mitigate risks associated with over-reliance on a single manufacturing hub and to navigate geopolitical complexities.

Furthermore, Apple has partnered with over 40 Indian firms to strengthen its local supply chain, reflecting a broader trend of diversifying manufacturing bases. Such strategies highlight the limitations of JIT in a world where agility and resilience are paramount.

(Source: NY Post, Business Standard)

Cardinal Health’s Shift to Resilient Healthcare Supply Chains

The limitations of Just-in-Time became especially clear during the 2020–2021 pandemic period, when healthcare providers faced dangerous delays in getting critical supplies. Cardinal Health, one of the largest healthcare distributors in the U.S., found that lean, just-in-time logistics could not cope with surging demand and fractured global sourcing. In response, the company moved away from JIT principles by investing in redundant distribution centres, maintaining safety stock of essential items, and using predictive analytics to increase supply chain visibility. This shift to a Just-in-Case approach highlights how even highly efficient supply chains must prioritize resilience when lives—and business continuity—are at stake.

(Source: Cardinal Health White Paper, Fierce Healthcare)

Reckitt Benckiser's U.S. Investment

As of 2024, Reckitt Benckiser is investing $200 million in a newly acquired factory in Wilson, North Carolina, to boost agility in meeting U.S. demand for over-the-counter medicines like Mucinex. This move comes in response to increasingly volatile demand patterns for cold and flu treatments, heightened by COVID-19 trends. By shifting some production from the UK and Mexico to the U.S., Reckitt expects to shorten delivery times by three to four weeks. The company aims to make its supply chain more resilient by localizing and diversifying production.

(Source: Wall Street Journal)

Keen Footwear's Domestic Expansion

As of mid-2025, footwear manufacturer Keen is set to open a new 60,000-square-foot factory in Shepherdsville, Kentucky, nearly doubling its U.S. production capacity. This strategic expansion emphasizes automation and domestic manufacturing, offering Keen a competitive edge amid new tariffs on imported goods, particularly from China. By shifting away from Chinese production due to rising costs and supply-chain concerns, Keen has shielded itself from the new tariffs that affect most shoe imports.

(Source: Wall Street Journal)

The Rise of Just-in-Case (JIC) Manufacturing

As the shortcomings of Just-in-Time (JIT) become increasingly evident, global manufacturers are turning to a more resilient alternative: Just-in-Case (JIC) manufacturing. Unlike JIT’s focus on eliminating inventory, JIC emphasizes preparedness—stockpiling critical components, diversifying supply sources, and building flexibility into operations to withstand disruptions.

At its core, JIC is about risk mitigation over pure efficiency. Companies are no longer optimizing solely for cost and lean operations but are now prioritizing continuity, responsiveness, and strategic agility. The idea is simple: it's better to have extra inventory or capacity “just in case” something goes wrong—whether it’s a pandemic, port shutdown, geopolitical tension, or natural disaster.

Key strategies in this shift include:

• Inventory buffers and safety stock: Manufacturers are maintaining larger inventories of critical materials to absorb shocks in supply.

• Supplier diversification and localization: Businesses are reducing dependency on single-source suppliers—particularly in high-risk regions—and investing in regional or domestic alternatives. This not only improves resilience but also shortens lead times.

• Nearshoring and reshoring: To reduce vulnerability to overseas disruptions, many companies are moving production closer to end markets. This is especially evident in sectors like pharmaceuticals, consumer goods, and electronics.

• Technology-driven foresight: Advanced analytics, AI, and digital supply chain platforms are enabling better scenario planning, demand forecasting, and real-time visibility. Companies can now strike a more deliberate balance between efficiency and risk management.

• Hybrid operating models: Some businesses are blending JIT and JIC principles—leveraging lean operations for stable product lines while building redundancy into more volatile or high-value segments. This layered strategy reflects a pragmatic evolution rather than a total rejection of lean principles.

Major U.S. companies—from Walmart to General Motors—are now reassessing global logistics networks and investing in control and continuity. The message is clear: operational excellence in today’s world isn’t just about being lean—it’s about being resilient.

Conclusion

The challenges of recent years have exposed the vulnerabilities of Just-in-Time manufacturing. While JIT offers efficiency in stable conditions, it falls short in the face of global disruptions and uncertainties. Companies are now prioritizing resilience, flexibility, and risk mitigation, often at the expense of lean inventory models. The evolution from JIT to more robust strategies like JIC signifies a fundamental shift in manufacturing paradigms, one that acknowledges the complexities of our interconnected world.

References:

1. Toyota broke its ‘just-in-time’ rule just in time for the chip shortage. The Hindu BusinessLine. thehindubusinessline.com

2. Apple's iPhone exports from India to US jumped 76% in push to avoid China tariffs. New York Post. May 27, 2025. dqindia.com+4nypost.com+4timesofindia.indiatimes.com+4

3. Apple taps over 40 Indian companies for supply chain as China ties strain. Business Standard. November 21, 2024. business-standard.com

4. Chip shortage: Toyota to cut global production by 40%. BBC News. August 19, 2021. bbc.com