From ‘Just in Time’ to ‘Just in Case’: Building Resilient Inventory Management

Effective inventory management is among the clearest measures of a business’s success — and one of the biggest challenges that supply chain teams face.

The pandemic served as a stark reminder of how quickly demand patterns can shift. When COVID-19 hit, demand surged for consumer goods that people could use at home, while it dropped off for automotive and industrial end-markets. Those supply and demand dynamics essentially flipped once the pandemic eased.

Now, as economic headwinds impact markets like consumer goods, smartphones and communication infrastructure, we’re seeing more suppliers simultaneously dealing with inventory overhang and sluggish demand. The disruptions caused by these shifts have been compounded by geopolitical tensions and changes in sourcing patterns.

To navigate these challenges, companies are largely sticking with tried-and-true inventory management strategies. According to Jabil’s 2024 Supply Chain Resilience Survey of nearly 200 supply chain and procurement decision-makers:

• 77% of respondents use safety stock inventory
• 77% practice …