FUSION Issue 3-2026 DIGITAL - Flipbook - Page 28
SUPPLY CHAIN
Has just in time
HAD ITS DAY?
Why manufacturers are choosing
resilience over pure efficiency, and
why the smartest version of that shift
looks less like a full warehouse and
more like better data.
What it means on the production floor
For years, just-in-time sat at the centre of manufacturing strategy. The
goal was simple: keep inventory lean, reduce tied-up cash, and rely on
smooth supplier flows. But the latest manufacturing data suggests a
quieter shift is underway.
What it means for procurement
In June, UK manufacturing output reached its highest level since
September 2024, even as the wider UK Manufacturing PMI eased from its
May level. The two moved in opposite directions because the headline
PMI blends several measures, while output alone climbed on the back of
stockpiling. Manufacturers were benefiting from clients building stock
ahead of expected price rises and potential supply chain disruptions,
which changes how the whole industry thinks about inventory.
That turns inventory from a cost problem into an insurance decision. The
question is no longer simply how little stock can we hold. It is becoming
what can we not afford to run out of.
Not the death of lean, but the end of lean alone
The swing back is not a complete rejection of lean thinking. More likely,
manufacturers are moving towards a hybrid model: just-in-time for
predictable lines, and just-in-case for critical materials, components,
and consumables that can stop work when missing. On a finishing or
composite shop floor, that might mean the abrasives, coatings, resins,
or bagging films a job simply cannot proceed without. A recent UK
Government foresight report describes supply chains moving from pure
just-in-time towards hybrid resilience models, with safety stock, supplier
diversification, risk mapping, and digital visibility all playing a larger role.
UK MANUFACTURING PMI
For production teams, the question is practical. Carrying more stock
can protect throughput, but only if it is controlled properly. Otherwise,
businesses risk tying up cash in the wrong items, holding expired stock,
duplicating purchases, and filling stores with materials that do not solve
the real bottleneck. Resilience without visibility can quickly become waste.
For procurement teams, the shift changes what value means. Lowest
price still matters, but it is no longer the only measure. Supplier
reliability, availability, delivery confidence, and the ability to respond
quickly now weigh just as heavily. A slightly higher unit cost can become
easier to justify if it prevents downtime, rework, or a missed production
window.
The real change is data, not shelves
The return of just-in-case may not look like rows of overstocked
shelves. It may look like better data. Knowing which items are genuinely
critical, which suppliers carry risk, and which parts are being consumed
faster than expected gives manufacturers more control than blanket
stockpiling ever could.
So has just in time had its day? Not entirely. But the version of
manufacturing built around perfect conditions is under pressure. In a market
shaped by shipping disruption, rising costs, and geopolitical uncertainty, the
winning approach may be less about holding the least stock possible and
more about knowing exactly where resilience is worth paying for.
“ Resilience without visibility can quickly
become waste. ”
OLD MODEL
NEW MODEL
• Lean stock
• Lowest cost
• Predictable supply
• Strategic buffer
• Supplier reliability
• Stock visibility
52.5 in June 2026
output index 52.6
the highest since September 2024;
roughly three quarters of UK goods
exports begin with an import.
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