Just in Time or Just in Case? How Importers Are Managing Inventory Today

I was talking to someone recently who made an interesting observation: many businesses have been operating in a "just in case" mindset over the past few years. He suggested this might explain why we haven't seen the typical spikes in volumes we would expect during inventory rebuilds.

It got me thinking about how differently importers are approaching stock management right now.

From my conversations with importers across a wide range of commodities, it's clear there's no one-size-fits-all approach. Some continue to operate on a just in time basis, while others maintain buffer stock "just in case." Both strategies have their place.

Just in Time ("She'll Be Right")

• Pros: Lower inventory holding costs, less capital tied up, more flexibility when demand shifts.

• Cons: Far less room for error when disruptions hit.

Just in Case ("Prepared Pete")

• Pros: Stock on hand when things go wrong, lower risk of running out, more certainty for customers.

• Cons: Higher storage costs, more capital tied up.

The type of commodity matters. You wouldn't want to stockpile the latest fashion trend only to be left with unsold product, smaller, frequent shipments make sense here. On the other hand, for items like packaging materials, buying in bulk and holding inventory can reduce freight costs, lower risk of stockouts, and ensure products are ready when customers need them.

At the end of the day, having the product available is what allows you to sell it, but how much you hold, and when, is a careful balancing act.