Toyota pioneered just-in-time manufacturing in the 1970s, and it transformed global supply chains. Instead of warehousing months of parts, factories receive components exactly when needed, eliminating waste and cutting costs dramatically.

This system works brilliantly in stable times. Quality improves because defects surface immediately rather than hiding in inventory piles. Cash flow improves because companies do not tie up money in unused stock.

But just-in-time creates extreme vulnerability to disruptions. When one link breaks, the entire chain stops. A single missing semiconductor can halt a car factory producing thousands of vehicles daily. Efficiency and resilience are fundamentally at odds.