Montreal, August 16th - View, click, add to cart, checkout, and repeat� Thanks to technological advancements, it�s never been easier to purchase anything from the other side of the world. Global demand for all sorts of products increases at an astronomical speed, with multimedia influence, shortened sales funnels, worldwide accessibility, and even easier access to credit. This journalist asks the question, then, is the strain on natural resources with companies often producing excessive stock, driven by quickly meeting the customers� demand to gain a competitive advantage? Our consumerist society encourages a lack of restraint and promotes materialistic extravagance. This raises the question: could just-in-time (JIT) manufacturing offer a solution to our overconsumption problem or would it amplify the issue?

Understanding Just-in-Case v.s. Just-in-Time manufacturing

Just-in-Case (JIC) manufacturing is used to prioritize supply chain security by ensuring the ability to meet unexpected demand spikes with additional inventory. Widely adopted across industries where supply disruptions, such as healthcare and aerospace, would have severe consequences. However, it is not uncommon to see JIC tactics employed for businesses producing consumer goods.

On the other hand, Just-in-Time (JIT) manufacturing focuses on minimizing the production of excessive inventory, only producing what is needed. JIT is demand-driven. Toyota developed this method in the 1970s to improve efficiency, waste production, and inventory costs. It has since been widely adopted by many companies, revolutionizing supply chain management. However, JIT may lead to stockouts if there is an unexpected spike in demand. As a result, products may be unavailable for a certain period.

JIT & Overconsumption

By aligning with actual demand, JIT addresses some of the causes of overconsumption. Excessive inventory is inexistent, meaning businesses can forget about warehouse and disposal costs and even the environmental impact of unsold products. 

JIT can also influence consumer behavior by encouraging more responsible consumption. The COVID-19 pandemic had an impact on global production, slowing it drastically. The impact was especially noticeable in tech, affecting the supply chain of car producers for example. Suppliers could not keep up with demand due to a shortage of microchips, causing deferred orders and an increase in pricing, due to the demand was high and the stock low. The sometimes longer processing times or delays of products made JIT a very enticing strategy for many businesses. The higher costs when demand is high can lead to a more thoughtful purchasing process. In this example, consumers may be more inclined to repair their car rather than pre-ordering a new one. Consumers could be more inclined to only buy what they need, knowing products are made in smaller quantities rather than mass-produced.

However, using the same example, the disadvantage of the absence and lack of security stock with JIT is obvious. The model is based on several factors, including the reliability of suppliers throughout the entire supply chain, the stability of demand, and the adaptability to market changes. Some consumers could seriously require a new car for many reasons and would be unable to afford one because of the price increase and limited stock. As we have seen during the COVID-19 pandemic supply chain disruptions can pose significant risks to operations, especially in the medical field. Additionally, JIT manufacturing could give a sense of urgency to consumers to purchase an item before it goes out-of-stock or before pre-orders close. Finally, while JIT may help in reducing overproduction, it does not necessarily address consumer overconsumption. Driven by factors like digital marketing growth, influencers, trends, and even planned obsolescence, JIT could induce a culture of exclusivity to surround a product. Businesses are responsible for planned obsolescence, which is a strategy where products are intentionally designed to have a limited lifespan, thus encouraging consumers to replace them more frequently. We may speculate that planned obsolescence is overlooked due to the influence of trends, especially in everchanging industries like fashion. An increase in manufacturers producing lower quality items operating with the logic that "the clothes will become unfashionable in a short period, thus, we should not produce them with high-quality materials" is a perfect example of what may encourage businesses to keep adopting a said model. However, we could refute this statement by arguing many clothing pieces are timeless classics!

Therefore, is JIT the solution to overconsumption?

Just-in-time manufacturing presents an interesting approach to reducing overproduction and waste, which are important side effects of overconsumption. By aligning production with consumer demand and minimizing inventory, JIT is a more sustainable manufacturing process. However, JIT must be paired with efforts from consumers and businesses! Modifying consumer behavior and promoting responsible consumption is a two-way street. Companies play a big role in shaping consumers� mentality and values about consumption through their marketing techniques. Therefore, businesses should use this authority in combination with the JIT model for everyone's best interest and continue to seek profitable solutions to overconsumption, avoiding planned obsolescence methods. JIT manufacturing is but a tool in the pursuit of a more sustainable future!