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> Smart business people will take this as a lesson about the dangers of zero-inventory manufacturing I disagree. Something entirely different is going on. Be
by OldHand2018 5y ago
> Smart business people will take this as a lesson about the dangers of zero-inventory manufacturing
I disagree. Something entirely different is going on. Before the pandemic, onshoring of basic components started picking up (Trump's erratic behavior made planning really challenging) but the pandemic kicked it into overdrive (and Biden's policy plans will only increase it).
I know people that are "Tier 3" manufactures - suppliers to the suppliers of the suppliers. They have more business than they can handle and are no longer willing to take on risk from sh*tty customers.
JiT/0-inventory doesn't truly exist - somewhere you have to build enough stock to ensure smooth delivery during line changeovers, shift changes, machine repairs, and all the other completely normal minor "disruptions". It's invisible at the high levels of manufacturing because it's not on your loading dock.
Smart business people will realize that supplier relationships are more important than ever. You have to screw them over less than the other guys or things get really choppy really fast.