After years of China shutdowns, Covid restrictions, vessel queues, port congestion, truck driver shortages, lack of storage facilities, backups at rail ramps, unavailable transport equipment, fragmented supply chain technologies; the supply chain was broke and store shelves were empty. Mercifully, much of that is behind us!
Was this brea
After years of China shutdowns, Covid restrictions, vessel queues, port congestion, truck driver shortages, lack of storage facilities, backups at rail ramps, unavailable transport equipment, fragmented supply chain technologies; the supply chain was broke and store shelves were empty. Mercifully, much of that is behind us!
Was this breakage inevitable given the Just-In-Time-Inventory methodology meeting up with a perfect storm of disruption? Is JIT finished? The below Supply Chain Dive article and interview with three experts provides unique perspectives.
Keep in mind, that JIT Inventory makes enormous sense for retailers to minimize those inventory carrying costs; which can amount to 20-30% of total inventory value and only increase until the inventory is sold. I agree with one of the experts that many will move to a Just-In-Case methodology or some combination of the two.
Suffice to say, this transition will be ever evolving.
#supplychain #logistics #justintime
Supply Chain Dive article:
The extremely low vacancy rate of warehouse space near ports, are moving logistic companies a bit further away. Places like San Bern, Las Vegas and PA are seeing a boom in warehouses. Couple this with companies shift in inventory management, to diversify risk of any disruption in one link of the Supply Chain and this warehouse trend may
The extremely low vacancy rate of warehouse space near ports, are moving logistic companies a bit further away. Places like San Bern, Las Vegas and PA are seeing a boom in warehouses. Couple this with companies shift in inventory management, to diversify risk of any disruption in one link of the Supply Chain and this warehouse trend may be around for a while. Of course, a challenge to this trend will be labor, both drivers and warehouse workers.
Very interesting article from Retail Brew...
Does your accountant return your calls? Do you feel comfortable asking them a question? Do you feel heard? With the right Fractional CFO, the answers should be a resounding "Yes!"
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