Just-in-time (JIT) vendor relationships are supply chain management techniques. The technique requires the supplier to deliver goods or services to its customer within a specific time window. This prevents excess inventory or supply depletion before customer needs are fulfilled. This is a lean operation approach and is intended to help the customer avoid storage costs, wastage of expired reagents and supplies, as well as shortages.
An example of JIT is often seen in chemistry automation contracts, where the number of patient and control tests performed in a specific time frame is electronically (perhaps automatically) transmitted to the vendor for replenishment of reagents and consumables. This minimizes storage space (e.g., refrigerators and freezers), as well as decreases the probability that reagents in inventory will expire, or that the lab will run out of supply prior to the next shipment.
The importance of ongoing communication with the vendor cannot be overstated. In times of surge testing, the laboratory official must be able to place an off-schedule or urgent request for immediate delivery of reagents and consumables without waiting for the anticipated electronic order to be filled through the system.
