JIT and SMI Orders Clause Samples

The 'JIT and SMI Orders' clause defines the procedures and requirements for handling Just-In-Time (JIT) and Supplier Managed Inventory (SMI) orders within a contract. It typically outlines how orders are placed, fulfilled, and managed, specifying responsibilities for inventory levels, delivery schedules, and communication between the buyer and supplier. For example, the supplier may be required to maintain certain stock levels at the buyer’s location or deliver goods on short notice based on real-time demand. This clause ensures efficient inventory management and timely delivery, reducing the risk of stockouts or excess inventory and supporting lean supply chain operations.