Toyota engineer Taiichi Ohno developed a manufacturing approach that minimized stored inventory by having parts and materials delivered only as needed for production, synchronized closely with supplier deliveries. Known as the Toyota Production System and popularized internationally as "just-in-time" manufacturing, the approach reduced warehousing costs and waste while requiring highly reliable, tightly scheduled logistics from suppliers. The system drew international attention after Japanese automakers demonstrated strong quality and cost performance in the 1970s and 1980s. Manufacturers and retailers worldwide later adapted just-in-time principles to their own supply chains.
Relevance to Trade History
Just-in-time logistics reshaped global manufacturing and supplier relationships, making precise, low-inventory coordination a competitive requirement across industries.
Read the full story in our article Container Shipping and the Modern Supply Chain.
Source: MIT Sloan School of Management, operations and supply chain research. See our Sources & Methodology page for how we select and verify references.