Flevy Management Insights Q&A
How can companies measure the success of JIT implementation in non-manufacturing sectors?
     Joseph Robinson    |    JIT


This article provides a detailed response to: How can companies measure the success of JIT implementation in non-manufacturing sectors? For a comprehensive understanding of JIT, we also include relevant case studies for further reading and links to JIT best practice resources.

TLDR Companies can measure JIT success in non-manufacturing sectors through KPIs like customer satisfaction, cycle time reduction, and cost savings, alongside qualitative outcomes such as operational flexibility, employee engagement, and improved supplier relationships, demonstrating its broad applicability and effectiveness.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Key Performance Indicators mean?
What does Operational Flexibility mean?
What does Employee Engagement mean?
What does Supplier Relationships mean?


Just-In-Time (JIT) implementation in non-manufacturing sectors involves the strategic management of resources, workflows, and information to ensure that services or products are delivered to the customer efficiently and without unnecessary delay. Measuring the success of JIT in these sectors requires a nuanced approach that considers both quantitative metrics and qualitative outcomes.

Key Performance Indicators (KPIs)

In non-manufacturing sectors, organizations can measure the success of JIT implementation through several Key Performance Indicators (KPIs). These include customer satisfaction scores, cycle time reduction, inventory levels, and cost savings. For instance, a significant indicator of successful JIT implementation is a noticeable improvement in customer satisfaction levels, as JIT aims to provide customers with what they want, when they want it, in the desired quantity. Consulting firms like McKinsey and Company often highlight the correlation between JIT practices and enhanced customer satisfaction due to reduced wait times and improved service quality.

Another critical KPI is the reduction in cycle times. Organizations can measure how quickly they can complete a service or deliver a product from the moment it is requested. A reduction in cycle times signifies that the organization has effectively streamlined its processes, thereby eliminating unnecessary steps and delays. Inventory levels are also a crucial metric; successful JIT implementation often leads to lower inventory levels, as resources are procured and utilized as needed rather than being stored. This reduction in inventory not only frees up capital but also reduces storage and maintenance costs, as noted in studies by Bain & Company.

Cost savings, resulting from reduced inventory carrying costs, lower waste levels, and optimized operational efficiency, are also a tangible measure of JIT success. Organizations can track these savings directly through their financial statements, offering a clear picture of the financial impact of JIT practices. Accenture's research has shown that companies implementing JIT can achieve significant cost reductions, enhancing overall financial performance.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Qualitative Outcomes

Beyond the quantitative metrics, the success of JIT implementation can also be measured through qualitative outcomes. One of the most significant is operational flexibility. Organizations in non-manufacturing sectors that have successfully implemented JIT can quickly adapt to changes in customer demand without significant disruptions. This agility is crucial in today’s fast-paced market environments and can be a competitive differentiator. For example, consulting firms like Deloitte have documented cases where service organizations have used JIT to rapidly adjust their offerings in response to market trends, thereby maintaining or even increasing their market share.

Another qualitative measure is employee satisfaction and engagement. JIT practices often lead to a more organized and efficient workplace, which can significantly impact employee morale. Employees in organizations that have successfully implemented JIT report higher levels of job satisfaction due to clearer processes, reduced clutter, and a stronger sense of contribution to the organization's goals. PwC has highlighted the link between efficient operational practices like JIT and improved employee engagement scores.

Finally, the improvement in supplier relationships can be an indicator of JIT success. As JIT requires close coordination with suppliers to ensure timely delivery of resources, organizations that implement JIT effectively often build stronger, more collaborative relationships with their suppliers. This can lead to better terms, improved quality of inputs, and more reliable supply chains. KPMG's analysis in various sectors has shown that robust supplier partnerships are critical for JIT success, contributing to the overall resilience of the organization.

Real World Examples

Several non-manufacturing organizations have successfully implemented JIT principles, showcasing the applicability and benefits of this approach across different sectors. For instance, healthcare providers have applied JIT to manage inventory levels of medical supplies more efficiently, reducing waste and costs while ensuring that the right materials are available when needed. A study by EY highlighted a hospital that implemented JIT inventory management, leading to a 30% reduction in inventory costs and improved patient care outcomes.

In the retail sector, companies like Zara have mastered JIT in their supply chain and inventory management, allowing them to quickly respond to changing fashion trends. This agility has not only reduced costs but also increased customer satisfaction by providing what customers want more rapidly. Bain & Company's analysis of Zara's operational model credits JIT practices with enabling the retailer's exceptional speed to market and inventory turnover rates.

Financial services firms have also adopted JIT principles, particularly in information technology and document processing. By applying JIT to these areas, firms like JPMorgan Chase have significantly reduced processing times and errors, leading to better customer service and reduced operational risks. Accenture's case studies in the financial sector demonstrate how JIT can streamline operations, even in industries traditionally seen as far removed from manufacturing.

These examples and measures underscore the versatility and effectiveness of JIT implementation across various non-manufacturing sectors, highlighting its role in driving operational excellence, customer satisfaction, and financial performance.

Best Practices in JIT

Here are best practices relevant to JIT from the Flevy Marketplace. View all our JIT materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: JIT

JIT Case Studies

For a practical understanding of JIT, take a look at these case studies.

Just in Time Transformation in Life Sciences

Scenario: The organization is a mid-sized biotechnology company specializing in diagnostic equipment, grappling with the complexities of Just in Time (JIT) inventory management.

Read Full Case Study

Aerospace Sector JIT Inventory Management Initiative

Scenario: The organization is a mid-sized aerospace components manufacturer facing challenges in maintaining optimal inventory levels due to the unpredictable nature of its supply chain.

Read Full Case Study

Just-In-Time Inventory Management Optimization for International Electronics Manufacturer

Scenario: An international electronics manufacturer, with production facilities distributed globally, is seeking to optimize its Just-In-Time (JIT) inventory management as production inefficiencies and rising costs restrain its growth potential.

Read Full Case Study

Just in Time (JIT) Transformation for a Global Consumer Goods Manufacturer

Scenario: A multinational consumer goods manufacturer, with extensive operations all over the world, is facing challenges in managing demand variability and inventory levels.

Read Full Case Study

Just-in-Time Delivery Initiative for Luxury Retailer in European Market

Scenario: A luxury fashion retailer in Europe is facing challenges in maintaining optimal inventory levels due to the fluctuating demand for high-end products.

Read Full Case Study

Just in Time Deployment for D2C Health Supplements in North America

Scenario: A direct-to-consumer (D2C) health supplements company in North America is struggling to maintain inventory levels in line with fluctuating demand.

Read Full Case Study




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

  •  
    "The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

    – Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
  •  
    "FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The "

    – Roderick Cameron, Founding Partner at SGFE Ltd
  •  
    "[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it give me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

    – Royston Knowles, Executive with 50+ Years of Board Level Experience
  •  
    "Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

    The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

    – Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.
  •  
    "As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

    – David Coloma, Consulting Area Manager at Cynertia Consulting
  •  
    "I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

    – Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
  •  
    "Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

    – Chris McCann, Founder at Resilient.World
  •  
    "If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

    – Debbi Saffo, President at The NiKhar Group



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.