The core of JIT purchasing is eliminating of all invalid labor and waste, reducing inventory levels as well as the fund occupier brought by a large number of stocks to achieve the purpose of increasing profits. Just-in-time (JIT) procurement has developed from the initial approach to reduce inventory levels to a management philosophy of rich context, including specific knowledge, principles, techniques and methods.
This article has been combing the development of the JIT and the related theory since the 20th century 70’s. In the literature review, we set out how to take JIT procurement under the actual situation of china’s enterprises through the JIT strategy based on VMI. And with examples, the paper also outlined the profile of Lianhua Supermarket, as well as its procurement status, and how to improve its procurement system with the VMI-based JIT procurement strategy, with a view to enhance the supply chain's overall competitiveness and global competitiveness.
