Now let's present some of the main advantages:

• Inventory Reduction: JIT allows companies to maintain only the materials needed for immediate production, eliminating the cost and space associated with large inventories. By producing only what is needed, when it is needed, stocks are kept to a minimum, which also involves enormous internal coordination and intelligent risk management.
• Increased Efficiency: With the implementation of JIT, production processes become more fluid and efficient. Minimizing waiting times between production steps reduces production cycles and improves resource utilization.
• Quality Improvement: Production according to demand highlights the need for quality at all stages. With fewer products in production, it is easier to identify and correct problems quickly, ensuring high-quality final products. However, if management is not efficient and if there is enormous pressure on the production network, errors may continue to occur.
• Flexibility and Adaptability: JIT allows quick adaptation to market changes. The ability to adjust production as demand fluctuates makes companies more agile and competitive, ready to respond to new opportunities and challenges.
• Cost Reduction: Reducing waste and optimizing processes contribute to a significant reduction in operational costs. Less stocks mean less capital invested in materials that are not being used, resulting in better financial management.
• Improved Cash Flow: With JIT, companies can more effectively align their purchases and sales. Reducing stocks in process and finished products makes more capital available, improving Cash-Flow and the organization's financial health. It is important to understand at this point that to obtain excellent Cash Flow, the payment period to suppliers must be longer than the period for receipt from customers, so that, in this way, there is always cash in hand.