What does “just-in-case” logistics refer to?

“Just-in-case” logistics is a strategy that emphasizes the importance of preparing for uncertainties in demand or supply. This approach involves having excess stock or inventory on hand to effectively manage unexpected situations, such as sudden increases in customer demand or delays in shipments from suppliers. By maintaining higher levels of inventory, businesses can ensure they are equipped to fulfill orders and maintain service levels even when faced with unforeseen circumstances.

This approach contrasts with “just-in-time” logistics, which focuses on reducing inventory levels to minimize carrying costs and increase efficiency. While keeping lean inventory can be advantageous in many cases, it may not adequately protect against volatility in the market or supply chain disruptions. Therefore, “just-in-case” logistics serves as a safety net, allowing organizations to be more resilient in the face of uncertainty.