Just in time inventory is a management strategy where you order and receive supplies as and when you need them in the production process. This reduces storage costs and waste by keeping the minimum amount of inventory. In hospitality this means ordering food, beverages and other consumables when you need them and not keeping large stock on hand.
This is good in hospitality because it controls costs, reduces spoilage and ensures freshness. By ordering ingredients or supplies just before you need them, restaurants and hotels can offer the freshest possible products to guests and minimize waste. It also frees up storage space, which is often at a premium in hospitality. Just in time inventory can save you a lot, especially for perishable goods, and allows you to be more flexible in responding to changing customer demands or unexpected events.
Let’s say you’re the head chef of a popular beachside restaurant. During summer you know you’ll need more seafood. Instead of ordering large quantities at the start of the season, you establish a relationship with local fishermen who can deliver fresh catch daily. You review your bookings each morning and order just enough fish for the day’s service. This way you always serve the freshest seafood, minimize waste if you have a slow day and can adapt quickly if there’s a sudden influx of customers or a change in the catch of the day. Your storage costs are lower, your menu is flexible and your customers are happy with the quality of your dishes.