In this exploratory analysis, a model is developed and tested to determine
whether the use of JIT purchasing reduces logistics costs for both supplier
s and buyers. The results indicate that JIT purchasing directly reduces cos
ts only for buyers. An indirect path, however, was found between JIT purcha
sing and logistics costs for suppliers. To the extent that JIT purchasing m
ay result in suppliers adopting JIT manufacturing techniques, then supplier
s too can benefit, at least indirectly, from JIT purchasing. (C) 2001 Elsev
ier Science B.V. All rights reserved.