Flevy Management Insights Case Study

Just in Time Deployment for Defense Contractor in High-Tech Sector

     Joseph Robinson    |    Just in Time


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Just in Time to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A defense technology firm faced significant challenges in implementing a Just in Time inventory system due to market volatility and stringent compliance requirements. The initiative ultimately reduced inventory costs by 25% and improved order fulfillment times by 30%, highlighting the importance of integrating technology and enhancing supplier collaboration while addressing change management and compliance issues.

Reading time: 8 minutes

Consider this scenario: A firm specializing in defense technology is struggling with the implementation of a Just in Time inventory system amid a volatile market.

With the unpredictable nature of defense contracts and the high cost of holding inventory, the company is facing significant challenges in managing their supply chain efficiently. The goal is to refine the Just in Time system to improve operational responsiveness and reduce carrying costs without compromising the stringent quality and compliance standards of the defense industry.



Based on an initial review of the situation, it seems that the organization’s challenges may stem from inadequate demand forecasting and an inflexible supply chain structure. Another hypothesis could be that the company's supplier network is not fully integrated into the Just in Time system, leading to inconsistencies in inventory management. Additionally, there might be a lack of real-time data analytics capability, which is crucial for effective Just in Time operations.

Strategic Analysis and Execution Methodology

This complex challenge can be tackled through a five-phase Strategic Just in Time Implementation Framework. This methodology not only ensures a systematic approach to refining Just in Time processes but also aligns closely with the organization’s strategic objectives. It is a proven process followed by top-tier consulting firms to enhance supply chain agility.

  1. Assessment & Planning: This phase involves understanding the current state of the Just in Time system, evaluating the supply chain network, and planning for change. Key activities include:
    • Conducting stakeholder interviews to gather insights.
    • Mapping the existing supply chain and identifying bottlenecks.
    • Developing a project roadmap with clear milestones and deliverables.
  2. Demand Forecasting & Supplier Integration: Accurate demand forecasting is vital for a successful Just in Time system. This phase focuses on:
    • Implementing advanced forecasting techniques and tools.
    • Enhancing supplier relationships to ensure timely deliveries.
    • Integrating suppliers into the Just in Time information system.
  3. Process Optimization: This phase aims to streamline processes for maximum efficiency. Activities include:
    • Applying Lean principles to eliminate waste.
    • Redesigning workflows for improved Just in Time operations.
    • Implementing continuous improvement cycles.
  4. Technology Enablement: Leveraging technology is key to Just in Time success. This phase involves:
    • Deploying real-time inventory tracking systems.
    • Integrating ERP with Just in Time modules.
    • Utilizing predictive analytics for better decision making.
  5. Performance Management & Review: The final phase ensures that the Just in Time system is sustainable. Key steps include:
    • Establishing KPIs to monitor performance.
    • Regularly reviewing the system and making adjustments.
    • Creating a feedback loop for continuous improvement.

For effective implementation, take a look at these Just in Time best practices:

PSL JIT - Kanban Implementation Presentation (62-slide PowerPoint deck)
PSL - JIT Heijunka Presentation (54-slide PowerPoint deck and supporting PDF)
Lean Leader GB Series 8 - Facilitate JIT (46-slide PowerPoint deck)
Develop a Just In Time System (47-slide PowerPoint deck and supporting ZIP)
Lean Champion Black Belt 10 - Develop JIT (47-slide PowerPoint deck)
View additional Just in Time best practices

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

Just in Time Implementation Challenges & Considerations

Executives may question the flexibility of the Just in Time system in adapting to the defense industry’s unpredictability. It is essential to tailor the system to handle sudden changes in demand without incurring excessive costs. Furthermore, the integration of new technology must be managed carefully to ensure a smooth transition without disrupting existing operations. Finally, establishing a culture of continuous improvement is crucial for the long-term success of the Just in Time system.

Upon successful implementation, the organization can expect a reduction in inventory costs by 25% and an improvement in order fulfillment times by 30%. These outcomes will contribute to a more robust bottom line and enhanced competitive advantage.

Implementation challenges include resistance to change among staff, the complexity of coordinating with multiple suppliers, and ensuring compliance with defense industry regulations. Each of these challenges requires careful change management and a strategic approach to stakeholder engagement.

Just in Time KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


Without data, you're just another person with an opinion.
     – W. Edwards Deming

  • Inventory Turnover Ratio: Indicates how often inventory is sold and replaced over a period.
  • Order Fulfillment Cycle Time: Measures the time from customer order to delivery.
  • Stockout Rate: Tracks the frequency at which inventory is not available when demanded.
  • Supplier Lead Time: Monitors the time taken by suppliers to deliver goods.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

During the implementation, it was observed that the organization's supply chain resilience improved significantly. A 2019 study by McKinsey & Company showed that companies with resilient supply chains have a 40% higher customer satisfaction rate. This insight underscores the importance of building a robust Just in Time system that can withstand market fluctuations and maintain high service levels.

Just in Time Deliverables

  • Supply Chain Diagnostic Report (PDF)
  • Just in Time Implementation Roadmap (PowerPoint)
  • Supplier Integration Framework (Excel)
  • Inventory Management Dashboard (Excel)
  • Change Management Plan (MS Word)

Explore more Just in Time deliverables

Just in Time Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Just in Time. These resources below were developed by management consulting firms and Just in Time subject matter experts.

Alignment with Strategic Objectives

Ensuring that the Just in Time implementation aligns with the broader strategic objectives of the organization is paramount. This involves a careful analysis of how the Just in Time system supports the company’s goals of growth, customer satisfaction, and operational efficiency. The strategic fit must be assessed at the outset to ensure that the operational changes will not only improve supply chain metrics but also contribute to the overall value proposition of the organization.

It is critical to communicate how Just in Time strategies integrate with the company's long-term vision. For example, a study by Bain & Company highlights that companies with highly aligned strategic and operational priorities can achieve up to 12 times the revenue growth and 15 times the profit growth of those with low alignment. Therefore, the Just in Time framework must be customized to support strategic imperatives, such as market expansion or product innovation.

Supplier Collaboration and Risk Management

The success of a Just in Time system heavily relies on the strength and reliability of supplier relationships. Executives need assurance that suppliers are not only integrated into the Just in Time information flow but also that they are capable of meeting the dynamic requirements of the defense industry. Managing supply chain risk becomes a critical component of this relationship, requiring a strategic approach to supplier selection, performance monitoring, and contingency planning.

A 2020 report by PwC indicated that 73% of supply chain leaders have improved visibility across their supply chain. However, maintaining this visibility in a Just in Time context requires rigorous performance monitoring and the ability to anticipate and respond to potential disruptions. Supplier collaboration must be underpinned by robust contracts and a clear understanding of mutual expectations to mitigate risks associated with Just in Time delivery models.

Technological Integration and Data Analysis

The role of technology in enabling a successful Just in Time system cannot be overstated. Executives often seek clarification on how technology investments will lead to improved inventory management and demand forecasting. The integration of real-time tracking systems, advanced analytics, and ERP systems must be seamless and should provide actionable insights that drive Just in Time decision-making.

According to a Gartner study, by 2021, 90% of supply chain leaders plan to invest in technologies and analytics to enhance their supply chain capabilities. The implementation of these technologies in a Just in Time context should focus on predictive analytics to anticipate demand changes and optimize inventory levels, ultimately leading to a more responsive and agile supply chain.

Cultural Transformation and Change Management

Adopting a Just in Time system is as much about cultural change as it is about operational change. A successful transformation requires the organization’s workforce to embrace new ways of working and to be agile in responding to supply chain demands. This cultural shift can be one of the most challenging aspects of Just in Time implementation, requiring a strategic approach to change management.

Accenture’s research underscores the importance of leadership in change initiatives, with 93% of companies with very effective change management meeting or exceeding their objectives. Leaders must be prepared to champion the Just in Time philosophy, communicate its benefits, and provide the necessary training and support to ensure that the workforce is aligned with the new operational model.

Just in Time Case Studies

Here are additional case studies related to Just in Time.

Food Services Firm Tackles Waste and Delays with Just in Time Strategy

Scenario: A mid-size food services company adopted a Just in Time strategy framework to address significant inefficiencies in inventory management and supply chain coordination.

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 Strategy for Retail Apparel in Competitive Market

Scenario: The organization is a mid-sized retailer specializing in apparel, facing inventory management issues that are affecting its ability to maintain a Just in Time (JIT) inventory system effectively.

Read Full Case Study

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

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 Transformation for D2C Apparel Brand in E-commerce

Scenario: A direct-to-consumer (D2C) apparel firm operating in the competitive e-commerce space is grappling with the challenges of maintaining a lean inventory and meeting fluctuating customer demand.

Read Full Case Study


Explore additional related case studies

Additional Resources Relevant to Just in Time

Here are additional best practices relevant to Just in Time from the Flevy Marketplace.

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.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Reduced inventory costs by 25% through Just in Time implementation, exceeding the initial target of 20% reduction.
  • Improved order fulfillment times by 30%, enhancing customer satisfaction and operational efficiency.
  • Enhanced supply chain resilience, aligning with the strategic imperative of operational agility amid market fluctuations.
  • Integrated real-time inventory tracking systems, enabling better decision-making and process optimization.
  • Improved supplier collaboration and risk management, evidenced by a 15% reduction in stockout rates.

The overall results of the initiative have been largely successful, with significant improvements in inventory costs and order fulfillment times. The integration of real-time inventory tracking systems and enhanced supplier collaboration have contributed to these successes. However, challenges remain in addressing resistance to change among staff and ensuring compliance with defense industry regulations. Alternative strategies could have included more robust change management efforts and closer alignment with industry compliance standards. Moving forward, it is essential to focus on change management and compliance to further enhance the outcomes of the Just in Time implementation.

For the next steps, it is recommended to conduct a comprehensive review of change management strategies and compliance frameworks to address the remaining challenges. Additionally, a focus on continuous improvement and further integration of technology for predictive analytics can drive additional efficiencies in the Just in Time system.


 
Joseph Robinson, New York

Operational Excellence, Management Consulting

The development of this case study was overseen by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

To cite this article, please use:

Source: Just in Time Deployment for D2C Health Supplements in North America, Flevy Management Insights, Joseph Robinson, 2025


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

 
"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC
 
"I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

– Moritz Bernhoerster, Global Sourcing Director at Fortune 500
 
"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
 
"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)
 
"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
 
"Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

In today's environment where there are so "

– Omar HernĂ¡n Montes Parra, CEO at Quantum SFE
 
"One of the great discoveries that I have made for my business is the Flevy library of training materials.

As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy "

– Ed Kemmerling, Senior Lean Transformation Expert at PMG
 
"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

– M. E., Chief Commercial Officer, International Logistics Service Provider




Additional Flevy Management Insights

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

Design Thinking Approach for Hospital Efficiency in Healthcare

Scenario: A regional hospital group faces significant challenges in patient care delivery, underscored by service design inefficiencies.

Read Full Case Study

Corporate Culture Transformation for a Global Tech Firm

Scenario: A multinational technology company is facing challenges related to its corporate culture, which has become fragmented and inconsistent across its numerous global offices.

Read Full Case Study

Agile Transformation in Luxury Retail

Scenario: A luxury retail firm operating globally is struggling with its Agile implementation, which is currently not yielding the expected increase in speed to market for new collections.

Read Full Case Study

Dynamic Pricing Strategy for Luxury Cosmetics Brand in Competitive Market

Scenario: The organization, a luxury cosmetics brand, is grappling with optimizing its Pricing Strategy in a highly competitive and price-sensitive market.

Read Full Case Study

Game Theory Strategic Initiative in Luxury Retail

Scenario: The organization is a luxury fashion retailer experiencing competitive pressures in a saturated market and needs to reassess its strategic positioning.

Read Full Case Study

Organizational Change Initiative in Luxury Retail

Scenario: A luxury retail firm is grappling with the challenges of digital transformation and the evolving demands of a global customer base.

Read Full Case Study

Implementation of the Zachman Framework for a Global Financial Entity

Scenario: An international financial firm is in the process of driving a significant technological shift across its global operations.

Read Full Case Study

Total Quality Management (TQM) Enhancement in Luxury Hotels

Scenario: The organization in question operates a chain of luxury hotels, facing significant issues in maintaining consistent quality standards across all properties.

Read Full Case Study

RACI Matrix Refinement for Ecommerce Retailer in Competitive Landscape

Scenario: A mid-sized ecommerce retailer has been grappling with accountability issues and inefficiencies in cross-departmental collaboration.

Read Full Case Study

Pharma M&A Synergy Capture: Unleashing Operational and Strategic Potential

Scenario: A global pharmaceutical company seeks to refine its strategy for pharma M&A synergy capture amid 20% operational inefficiencies post-merger.

Read Full Case Study

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.