JIT has also weak points. In just-in-time, everything is very interdependent. Everyone relies on everybody else. But it can be dangerous if just one supplier doesn’t deliver on time or delivers defective components. Because of this strong interdependence, a weakness in the supply chain can be very costly to all linked in the chain. Labour strikes and port lockouts can quickly disrupt an entire supply chain. Besides, JIT processes can be risky to certain businesses and vulnerable to the supply chain in situations of unforeseen production interruptions. So companies prefer to keep reserve inventories. But the big Japanese manufactures have large networks of subcontractors, and the whole system is based on long-term relationships and mutual trust. Small suppliers often try to situate their facilities close to the location of a larger company with which they work.
Moreover, every year markets experience seasonal demand fluctuations as well as fluctuations due to disasters or other unforeseen events. Because of market demand fluctuations not all products can be produced with JIT systems. Communication is king in a JIT supply chain. Technology also plays a key role in JIT, however, the reliance on technology and lack of communication upstream and downstream in the supply chain can lead to breakdowns in the IT systems
Weaknesses in JIT systems are very important to recognise. Companies must strongly evaluate the pros and cons of implementing JIT systems. The effects and risk to their supply chain must also be heavily considered. Although JIT has its weaknesses, in most cases the benefits outweigh the risks of implementing JIT. Planning and recognising when things may go wrong are vital for the success of JIT implementation across all areas of supply chains.
