Just-In-Time (JIT) inventory is a business methodology that emphasizes the capture of value through the reduction of time, inventory and cost. The practice was initially developed by the Japanese auto industry to reduce the amount of inventory stored at any given time and reduce costs associated with holding too much stock. By relying on suppliers closer to their factory and shortening the delivery lead times, manufacturers were able to cut costs while also providing better service. At its core, Just-In-Time inventory relies on establishing a reliable supply chain and rigorous quality control processes to manage the flow of goods. This leads to more efficient operations, lower inventory costs, greater customer satisfaction and increased profits.