FROM JUST-IN-TIME TO JUST-IN-CASE: TRANSITION DYNAMICS, DIGITALIZATION AND FINANCIAL IMPLICATIONS FOR EUROPEAN COMPANIES

Abstract

For decades, the just-in-time (JIT) paradigm has defined operational efficiency by minimizing inventories and reducing working capital requirements. However, recent global disruptions have exposed its structural vulnerabilities, prompting renewed interest in just-in-case (JIC) strategies that prioritize resilience through redundancy, inventory buffering, and supplier diversification. At the same time, rapid advances in digital technologies are reshaping how firms manage this transition. This paper examines the interplay between transition dynamics, digitalization, and financial implications as European companies move from JIT to JIC. Building on a structured review of the literature, we develop a conceptual framework that positions digitalization not merely as an enabler but as a mediating force that redefines the efficiency-resilience trade-off. Digital tools such as real-time data analytics, platform integration, and predictive systems alter inventory strategies, risk management practices, and capital allocation decisions. Drawing on illustrative case evidence, we show that digitalization can both mitigate and amplify the financial burdens of JIC adoption, depending on firms’ capabilities and resource endowments. The paper contributes by integrating fragmented insights across supply chain management, digital transformation, and corporate finance, offering a coherent perspective on strategic adaptation under uncertainty. It also provides actionable implications for firms and policymakers navigating an increasingly volatile and digitalized economic landscape.