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Well, its the truth. You don't have to be a rocket scientist or have a PHD in supply chains to understand there are second/third order consequences by cancelli
by genmud 5y ago
Well, its the truth.
You don't have to be a rocket scientist or have a PHD in supply chains to understand there are second/third order consequences by cancelling significant amounts of your forecasted production and then expecting your suppliers to magically pick up where you left off.
Its why you keep production/manufacturing warm rather than do stops (which is what they essentially forced their suppliers to do by cancelling purchases).
This is BCP 101 and I give the auto industry no sympathy since most of this pain was entirely self inflicted. They tried to push all the risk to their suppliers, left them holding the bag and had a shocked Pikachu face when they couldn't ramp back up to prior levels.
- jacques_chester 5y agoWe're talking about different things. A company running to optimise EOQ and favouring long production runs with few changeovers would be just as screwed by misunderstanding lead times of critical components. JIT doesn't excuse you from supply chain shocks but neither does Lost Magical Process Of The Wonderful Times Before JIT.