Which cost reduction strategy involves purchasing goods for timely delivery to meet customer demand?

The strategy that focuses on purchasing goods for timely delivery to meet customer demand is Just in Time (JIT). This approach emphasizes the importance of aligning inventory levels closely with production schedules and customer demand. By using JIT, organizations aim to reduce inventory holding costs and minimize waste, ensuring that materials arrive precisely when needed in the production process.

This method relies on efficient communication and coordination with suppliers to achieve a streamlined supply chain where goods and services are delivered just as they are required. This not only helps in meeting customer demand promptly but also enhances overall operational efficiency by reducing excess stock and associated carrying costs. JIT is particularly beneficial in environments where the demand for products can fluctuate, allowing businesses to respond swiftly to changes in market conditions without incurring unnecessary costs.