Just-in-Time for Clothing Manufacturers: A Comprehensive Guide

Overall revenue growth in the fashion industry is projected to hover around 5% for the third consecutive year in Europe and the United States. Several factors seem to contribute to this sluggish pace, including general economic uncertainty and a changing landscape for global trade.

In response, companies are emphasizing a more localized approach to bringing products to market and placing greater emphasis on providing value to cost-conscious consumers. For many businesses, this means taking a closer look at the principles of just-in-time (JIT) manufacturing, which focuses on producing inventory after customers have ordered it. JIT injects flexibility into the production process, lets apparel makers quickly respond to industry trends, and reduces waste—all key factors in cutting costs and adding value in a dynamic market.

What Is Just-in-Time (JIT) in Clothing Manufacturing?

JIT in clothing manufacturing refers to producing apparel on demand, a response to the fashion industry’s constantly evolving market trends. Manufacturers make garments when sellers want them, as opposed to producing (and then storing) larger batches of clothing to reflect forecasted demand.

Manufacturers that adopt the JIT approach attempt to minimize the amount of raw materials they have on hand; thus, production doesn’t begin until necessary supplies arrive. This cuts inventory costs and waste, while allowing for greater flexibility in production. The goal: The hottest trends go from designer to retailer in a matter of weeks.

Key Takeaways

• JIT clothing manufacturers make products on demand, instead of anticipatorily producing inventory and waiting for orders to come in.
• By starting production only after supplies have arrived, the JIT approach minimizes waste and avoids storage costs.
• JIT strategies help apparel companies improve time to market, lower inventory costs, and enhance their cash flow.
• Companies embracing JIT manufacturing often rely heavily on suppliers and logistics partners to keep operations moving and avoid unnecessary delays.
• Technology, such as ERP software, process automation, and predictive analytics, let clothing companies effectively manage operations in a JIT setting.

Just-in-Time in Clothing Manufacturing Explained

The JIT approach to clothing production is closely tied to lean manufacturing, a practice that aims to minimize waste while increasing the value offered to customers. In lean manufacturing, waste can refer to material waste, such as from defective or unsold products, as well as intangible waste, such as that caused by idle equipment or avoidable movement of goods.

At its core, lean manufacturing uses a “pull” system in which products are made to meet customer demand. (A “push” system, on the other hand, produces goods based on forecasted demand.) On-demand apparel manufacturing allows clothing manufacturers to retain minimal inventory, as finished items are shipped to fulfill customers’ orders instead of being sent to warehouses. Additionally, production processes tend to be flexible, as they must shift in response to market trends and customer expectations. Finally, suppliers are closely involved, and often located nearby; that gives them the opportunity to understand a manufacturer’s production workflows and business needs and become a reliable partner over time.

What Is the Purpose of JIT in the Clothing Industry?

The JIT process lets clothing companies implement on-demand apparel manufacturing in response to ever-changing market trends. By eschewing mass production, manufacturers can manage fewer raw materials, carry less unsold inventory, adopt a flexible and efficient production process, and get products to customers quickly. The purpose of JIT manufacturing in the clothing industry is to:

• Produce only what’s needed: As many as 40% of the garments made every year are never sold. This excess inventory often ends up in landfills or gets burned—neither of which is good for the environment. Linking production processes to customer orders, as the JIT approach does, helps clothing manufacturers make only what’s needed. This eliminates the headaches of storing or disposing of excess inventory, especially if warehouses are far from the manufacturing site.
• Produce faster and with less waste: JIT clothing manufacturing contributes to short lead times, as production is directly linked to customer demand. There are environmental benefits, too. The process improves sustainability in apparel, as clothing manufacturers use less raw material to fulfill actual orders, as opposed to mass-producing products. Companies also cut back on water consumption because they aren’t processing extra material and creating excess inventory. Finally, emissions from transportation decrease since manufacturers ship finished goods directly to customers, not to warehouses.
• Produce with fewer handling steps: In the JIT model, a clothing manufacturer doesn’t order supplies until it receives a customer order. When supplies arrive, production begins; once production is completed, the order is fulfilled and shipped. Eliminating steps, such as preordering supplies, pulling them from a warehouse, and transporting finished inventory to storage, diminishes the likelihood of human error, damage, or unanticipated delays.
• Produce using lean manufacturing principles: JIT production is closely linked to the core principles of lean manufacturing, which emphasizes greater efficiency and customer satisfaction. These principles consist of identifying value from the customer’s perspective; mapping value streams to spot waste; creating workflows that eliminate waste; establishing a pull system based on customer demand; and pursuing the continuous improvement of operational processes.

What Is the Difference Between Just-in-Time Clothing Manufacturing and Just-in-Case Clothing Manufacturing?

The main difference between JIT and just-in-case manufacturing comes down to inventory management. A JIT strategy aims to have necessary supplies arrive when they’re needed, and no sooner. For clothing companies, the goal of such synchronization is to maintain high production levels with minimal inventory holding. This helps manufacturers avoid overproduction and waste and eliminates the cost of managing stagnant inventory, though it’s also dependent on reliable suppliers.

Just-in-case manufacturing, on the other hand, prioritizes proactive purchasing of supplies and production of inventory. It’s an effective strategy for companies operating in markets where demand is difficult to predict, raw materials are subject to shortages or price fluctuations, or suppliers have proven to be unreliable. The drawbacks for the apparel industry include stockpiling supplies, which is risky given how quickly clothing trends can change, and tying up capital in inventory that’s yet to be shipped.

What Are the Benefits of JIT in Clothing Manufacturing?

Because JIT manufacturing emphasizes beginning production only when raw materials have arrived, clothing companies lower the cost of keeping inventory on hand. They’re also able to maintain flexible production schedules to meet demand, bring finished products to market quickly, and keep revenue coming in as inventory heads out the door. Placing regular orders with vendors leads to stronger supplier partnerships, as well. More specifically, the JIT approach:

• Lowers inventory and storage costs: Using the JIT approach, clothing manufacturers keep minimal inventory in reserve, as they make just enough products to fulfill orders. This cuts down on carrying costs and significantly lowers spending on apparel warehousing because finished products don’t need to be stored before they’re shipped.
• Improves time to market: JIT manufacturing shortens throughput time. For example, production isn’t interrupted by late shipments of supplies because production doesn’t begin until all supplies are in-house. Workflows that eliminate waste, meanwhile, can limit delays associated with queuing by running multiple production steps in parallel. This helps decrease time to market, which is critical for clothing manufacturers fulfilling orders on demand to meet customers’ needs.
• Results in better quality products: JIT principles support manufacturing on a smaller scale, as clothing makers aren’t aiming to mass-produce apparel. This allows them to source more durable and sustainable materials and to create more customized clothing, conditions that contribute to longer-lasting products and further minimizes the waste associated with discarded, damaged clothing.
• Increases production efficiency and flexibility: By linking production to customer demands, JIT clothing manufacturers are well positioned to adapt to changing market trends and tastes. Companies also use resources more efficiently: Supplies go into production after they arrive and, as a result, machinery is less likely to stand idle.
• Enhances cash flow: When inventory sits in a warehouse waiting to be shipped and sold, it represents cash that’s not coming in. The JIT approach helps synchronize inventory on hand with forecasted demand. As a result, companies improve cash flow by spending less to store unsold inventory.
• Strengthens vendor partnerships: Clothing companies that embrace the JIT model need suppliers that understand their timelines and workflows—and that are prepared to meet requirements quickly when there are orders to fulfill. To achieve this, many apparel makers choose local suppliers. Not only do fast shipments cut delivery wait times and costs, but proximity can help build strong professional partnerships.

Risks of JIT in Clothing Manufacturing

Though JIT manufacturing in the apparel industry can improve product quality, increase efficiency, and cut the cost of inventory management, it’s not without risk. Clothing manufacturers must rely on their suppliers to get raw materials to them in time. Internally, meanwhile, they must be capable of accurately forecasting demand to make sure the supplies that arrive are, in fact, the supplies necessary for production. Businesses should be aware of the following associated risks:

• Dependence on suppliers and logistics: Manufacturers that embrace the JIT approach must rely on suppliers that can get them the raw materials they need as soon as customers have placed orders. They also need reliable logistics and transportation partners to deliver supplies and ship orders to fulfill the tight turnaround times of JIT manufacturing. As a result, apparel companies would be wise to vet their partners carefully.
• Vulnerability to supply chain disruptions: In an ideal JIT clothing manufacturing scenario, raw materials arrive just as production is slated to begin. Unfortunately, this leaves companies vulnerable to a range of potential supply chain disruptions that are beyond their control. Natural disasters, geopolitical issues, technology failures, quality control issues, and labor shortages could all prevent materials from arriving on time. This is part of the reason why many JIT clothing manufacturers seek suppliers that are located nearby, as this lessens their vulnerability to supply chain disruptions.
• Challenge of precise demand forecasting: For clothing manufacturers, the JIT approach requires accurate fashion forecasting. Retaining limited space for raw materials and inventory leaves apparel companies with little margin for error; in simple terms, there’s nowhere to store unnecessary items. Additionally, an inability to anticipate which raw materials will be needed to satisfy customer orders could put customer relationships in jeopardy.

How Is JIT Used by Apparel Companies?

Many major clothing companies have benefited from adopting the JIT approach. One example is Zara, which is able to design and manufacture up to 50% of its clothing in the middle of a fashion season, thanks to its embrace of JIT inventory management and manufacturing. Zara can accomplish this, in part, by monitoring sales data in real time, which helps the company forecast demand and avoid overstocking. Zara has also embraced the use of AI by embedding chips in clothing tags to automate inventory management.

H&M similarly monitors sales data, as well as customer preferences and global fashion trends, to inform its decisions related to restocking existing products and launching new ones. Uniqlo, for its part, applies the JIT approach to seasonal products while monitoring demand for its core products, which are manufactured using the just-in-case model to maintain long-term availability. Finally, by applying JIT manufacturing across previously disparate facilities in Southeast Asia, Nike has reduced production lead times by 40% and made it possible to bring new models to market 30% faster.

How Does Technology Enable JIT Clothing Manufacturing?

Technology adoption and successful JIT manufacturing go hand in hand. Companies need to forecast demand, fulfill customer orders, manage suppliers and other partners, and monitor sales and trends. The closer to real time this can be accomplished the better, because it enables manufacturers to shift production in response to changing fashion trends. Several key components of apparel industry technology can help, often starting with analytics, which lets clothing makers predict future demand based on historical sales data and then use that information to plan production, order raw materials, and allocate resources.

ERP plays a pivotal part, as well. Apparel ERP software aggregates inventory, order, sales, and supplier data in a centralized repository. Along with providing increased visibility into end-to-end production and helping companies identify opportunities to improve efficiency, centralized data makes it possible to automate a range of manufacturing processes, such as reordering stock, tracking inventory, and creating reports.

Other important technology tools for supporting JIT in clothing manufacturing include supply chain management, order management, and scheduling. Each of these tools continually monitors information and makes data-driven recommendations to optimize the manufacturing process. Meanwhile, barcode scanners and other mobile devices gather data at the point of production, eliminating the need to manually enter information into a workstation.

Supercharge Lean Production With Inventory Management Software

To effectively implement a JIT strategy, clothing manufacturers need end-to-end visibility into production workflows. That requires aggregating data from customers and suppliers, as well as the shop floor, and analyzing that data in real time to promote informed business decisions. NetSuite Inventory Management and ERP software for the apparel industry combine to equip clothing companies with the ability to optimize inventory levels, minimize handling expenses, and direct key resources to the right place at the right time. Manufacturers can monitor changes in demand using both historical and seasonal data and use those insights to determine which raw materials to replenish from which suppliers. Meanwhile, the ability to track inventory allows clothing companies to bring greater efficiency to order fulfillment, positioning them as reliable partners to clothing retailers in an increasingly competitive market.

The JIT approach to manufacturing lets clothing companies reduce waste, lower inventory costs, improve time to market, and stay on top of trends in a dynamic industry. Success depends on efficient operations, reliable suppliers, and effective prediction of customer demand—all of which can be augmented using integrated business solutions to create a 360-degree view of manufacturing operations and facilitate data-driven insights in real time.

Just-in-Time for Clothing Manufacturers FAQs

What is JIT in the garment industry?

In the garment industry, just-in-time (JIT) manufacturing refers to the strategy of aligning the arrival of supplies with the beginning of production. This lets apparel companies synchronize production with demand, minimize spending on (and use of) raw materials in production, and improve cash flow, since inventory isn’t shipped until it’s finished.

What’s the difference between JIT and JIC?

Just-in-time (JIT) manufacturing relies on necessary supplies arriving only when they’re needed, allowing manufacturers to balance production volume and inventory levels and keep minimum amounts of stock on hand. By contrast, companies using the just-in-case (JIC) method keep enough supplies on hand to meet any level of demand, which can protect them from falling behind but also incurs higher storage costs.

Is JIT the same as on-demand manufacturing?

Though there are many similarities between just-in-time (JIT) and on-demand manufacturing, one key difference is how production is executed. JIT sources raw materials at the time of production, after an order has been received, while on-demand manufacturers may already have supplies on hand to begin production.