Just‐in‐time as a competitive weapon: The significance of functional integration

Abstract

The Just‐in‐Time (JIT) concept has often been considered a preserve of manufacturing and distribution. However, the philosophy has evolved to a strategic level where the concept can be applied throughout an organization. In particular, the cross‐functional integration of JIT in production, purchasing and marketing can provide continuous improvement and sustain a source of differential advantage for a firm. This paper explores this philosophy and presents research data to demonstrate that the functional integration needed to implement JIT can improve a company's efficiency, quality, flexibility and innovativeness. and lead potentially to the acquisition of competitive advantage and, perhaps, to world‐class status.