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Just-In-Time (JIT)

Trading Term

The Just-In-Time (JIT) supply chain is a strategy that aims to increase efficiency by receiving goods only as they are needed in the production process, thereby reducing inventory costs. This approach requires precise coordination and communication with suppliers to ensure timely delivery. However, tariffs can significantly impact JIT systems. When tariffs are imposed, they can increase the cost of imported goods, disrupt supply schedules, and necessitate adjustments in sourcing strategies. Companies may need to reassess their supply chain networks to mitigate these effects, potentially seeking alternative suppliers or renegotiating terms to maintain cost-effectiveness and operational efficiency.

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