JIT purchasing and performance: an exploratory analysis of buyer and supplier perspectives

Abstract In this exploratory analysis, a model is developed and tested to determine whether the use of JIT purchasing reduces logistics costs for both suppliers and buyers. The results indicate that JIT purchasing directly reduces costs only for buyers. An indirect path, however, was found between JIT purchasing and logistics costs for suppliers. To the extent that JIT purchasing may result in suppliers adopting JIT manufacturing techniques, then suppliers too can benefit, at least indirectly, from JIT purchasing.