The interesting thing in this article is that shipping companies are dropping it off at alternative ports, but not notifying in advance which port. While I understand they have their own concerns...
The interesting thing in this article is that shipping companies are dropping it off at alternative ports, but not notifying in advance which port. While I understand they have their own concerns to deal with, it must be frustrating to all the shipping customers to be notified "We are going to drop off your cargo at a different port, but won't tell you in advance which port" and if they do not move their shipment from the port quickly enough, they will get fined. Shipping companies should be held to some standard of having to communicate in advance if they are delivering to alternate ports.
My guess is that they don't know what port will accept the cargo ship so they can't tell them in advance. I'm sure neighboring ports will all be at capacity.
My guess is that they don't know what port will accept the cargo ship so they can't tell them in advance. I'm sure neighboring ports will all be at capacity.
In gonna find only limited sympathy for any company that runs out of supplies over this. We just had an extended lesson on why "just in time" is not a good logistics model.
In gonna find only limited sympathy for any company that runs out of supplies over this. We just had an extended lesson on why "just in time" is not a good logistics model.
To be fair to "just in time", most companies just have stupid logistics and look for an excuse when something inevitably goes wrong. Toyota, the creator of just-in-time logistics, moved to the...
To be fair to "just in time", most companies just have stupid logistics and look for an excuse when something inevitably goes wrong. Toyota, the creator of just-in-time logistics, moved to the system after the 2011 earthquakes in Japan. The whole point of lean logistics is to have a robust and resilient supply-chain that always delivers what the factory needs exactly when they need it. Stockpiling too much inventory in one place is a huge risk (what if a fire breaks out in your one warehouse?), but the counterfactual of "the point of just-in-time is minimizing stockpiles" isn't true either.
Companies make short-sighted logistic decisions and label it whatever the hot thing is. It's like when a manager brings in a consultant or a new method...only to adopt the worst parts and completely misunderstand the purpose (see also: Agile).
(There are legitimate criticisms of lean manufacturing, but it's still better than the alternatives 99.99% of the time.)
To be fair it was “the only way to do things. Why would you up costs?” for most places right up until Covid and I’m sure many are still working on pivoting away
To be fair it was “the only way to do things. Why would you up costs?” for most places right up until Covid and I’m sure many are still working on pivoting away
That's really not true. Just in time logistic is a very advanced type of supply chain that only very advanced companies can realistically even try to have. The majority of companies do not operate...
That's really not true. Just in time logistic is a very advanced type of supply chain that only very advanced companies can realistically even try to have. The majority of companies do not operate in this way, because they do not have the expertise nor connections to, but like the other commenter said, the "old way" of doing things is more liable to supply chain disruptions - if you have your eggs in one basket, you have a tougher time when a ship runs into it.
Maybe it's just the industries i've been in but i'm practically quoting multiple conversations i've heard there. Granted some of this is from people who worked at grocery stores, which are the...
Maybe it's just the industries i've been in but i'm practically quoting multiple conversations i've heard there. Granted some of this is from people who worked at grocery stores, which are the most sensitive to supply chains for all sorts of reasons, but JIT was very very common in my experience.
I can't speak to your sources, but I can say that Walmart at least has some of the most robust supply chains in the world, in spite of their wide variety of products. The whole reason Walmart...
I can't speak to your sources, but I can say that Walmart at least has some of the most robust supplychains in the world, in spite of their wide variety of products. The whole reason Walmart originally took off was in-housing their logistics and supply chains allowed the founder, Sam Walton, to keep prices extremely competitive. Their tightly tuned logistical operations predate the term JIT by a few decades.
Some ocean carriers are invoking ‘force majeure’ as a result of the Port of Baltimore bridge collapse and telling shippers including U.S. retailers that once cargo is dropped at alternate ports, it’s no longer their responsibility.
Logistics companies tell CNBC the next 36 hours are critical in tracking the diverted trade and information is hard to get from container vessel companies, and could result in port penalties if they don’t pick up shipments quickly.
The interesting thing in this article is that shipping companies are dropping it off at alternative ports, but not notifying in advance which port. While I understand they have their own concerns to deal with, it must be frustrating to all the shipping customers to be notified "We are going to drop off your cargo at a different port, but won't tell you in advance which port" and if they do not move their shipment from the port quickly enough, they will get fined. Shipping companies should be held to some standard of having to communicate in advance if they are delivering to alternate ports.
My guess is that they don't know what port will accept the cargo ship so they can't tell them in advance. I'm sure neighboring ports will all be at capacity.
In gonna find only limited sympathy for any company that runs out of supplies over this. We just had an extended lesson on why "just in time" is not a good logistics model.
To be fair to "just in time", most companies just have stupid logistics and look for an excuse when something inevitably goes wrong. Toyota, the creator of just-in-time logistics, moved to the system after the 2011 earthquakes in Japan. The whole point of lean logistics is to have a robust and resilient supply-chain that always delivers what the factory needs exactly when they need it. Stockpiling too much inventory in one place is a huge risk (what if a fire breaks out in your one warehouse?), but the counterfactual of "the point of just-in-time is minimizing stockpiles" isn't true either.
Companies make short-sighted logistic decisions and label it whatever the hot thing is. It's like when a manager brings in a consultant or a new method...only to adopt the worst parts and completely misunderstand the purpose (see also: Agile).
(There are legitimate criticisms of lean manufacturing, but it's still better than the alternatives 99.99% of the time.)
To be fair it was “the only way to do things. Why would you up costs?” for most places right up until Covid and I’m sure many are still working on pivoting away
That's really not true. Just in time logistic is a very advanced type of supply chain that only very advanced companies can realistically even try to have. The majority of companies do not operate in this way, because they do not have the expertise nor connections to, but like the other commenter said, the "old way" of doing things is more liable to supply chain disruptions - if you have your eggs in one basket, you have a tougher time when a ship runs into it.
Maybe it's just the industries i've been in but i'm practically quoting multiple conversations i've heard there. Granted some of this is from people who worked at grocery stores, which are the most sensitive to supply chains for all sorts of reasons, but JIT was very very common in my experience.
I can't speak to your sources, but I can say that Walmart at least has some of the most robust supply chains in the world, in spite of their wide variety of products. The whole reason Walmart originally took off was in-housing their logistics and supply chains allowed the founder, Sam Walton, to keep prices extremely competitive. Their tightly tuned logistical operations predate the term JIT by a few decades.