How to avoid the disadvantages of just in time ordering in retail business?

in addition to the previous answer, another serious factor should be taken into consideration is the uncertainty of the demand which may lead to a difficulties to the suppliers to meet the demand. JIT has many advantages and probably disadvantages but the success factor is how plan and manage your inventory.

Despite the magnitude of advantages, there are also some disadvantages associated with just-in-time procurement, which are:

• Supplier's failure to deliver goods exactly on time, which may seriously hurt the production process.
• A natural disaster could interfere with the flow of goods to the company from suppliers, which could halt production almost at once.

The above Risk Areas are very serious and needed to be taken into consideration before adopting JIT. Suppliers should be selected with utmost diligence so there is very minimal chance of delays or default at their end. Not only their performance should be continuously monitored but their production facilities must be checked frequently to identify any potential risk areas at their end. This would be helpful in tackling any such problems. As far as unpredictable disasters, I would always go in favour of keeping inventory of critical items even if the company is on JIT procurement policy.

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JIT has several advantages. As a coin has two sides, it has some disadvantages. Any programs, if it could complete as you planned, then it is a success, otherwise it is failure! The important is, understanding the pitfalls and how to mitigate the risk.

As another answers pointed, supply disruption, that’s the grave disaster of JIT

Unexpected strikes, natural calamities, power failure are other risks in the developing countries.

Wrong supply, short supply and defects may affect the demand pull situations.

One of the most important disadvantages is, you cannot respond the price advantage in the market. Whenever the raw material price is low, you are not storing it.

Secondly, look at Silicon Valley incidents. A flood in Thailand affect the production of ‘chips’ and it affect the cost most of the tech-giants.

Natural raw material, scarce resources, bottle neck items and perishable goods are getting on JIT is more costly because the planning cost will be very high compare to durable goods and common products available in the market.

Planning, infrastructure and ICT cost / investment will be higher in JIT compare to the other organizations.