Accurate forecasting and inventory control have enabled far-flung manufacturers to produce and deliver components, essentially on-demand, to a global network of suppliers and customers, while avoiding costly warehousing and other overhead expenses. However, these just-in-time policies have a downside and can leave many companies vulnerable to missed production targets and inability to meet customer demands.

Whenever there is an interruption in the supply chain (natural or man-made), the "just-in-time" system is in jeopardy of breaking down and mission-critical industries must look elsewhere for highly desirable components. If a manufacturer has forecasted incorrectly and not manufactured enough of a product line, it could take 6 to 12 months before it can return to production after having retooled for other components.

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Keywords: supply chain management, supply chain risk management, just-in-time delivery, manufacturing, assembly line, logistics & supply chain