A good explanation of shortages

[Telecaster]

This focuses on the automotive chip shortage, but discusses the weakness of the "just in time" manufacturing method. Toyota was smart, and DID keep inventories of chips, unlike other car companies. They key is knowing how much inventory to keep.

Why There are Now So Many Shortages (It's Not COVID) - YouTube

 

[remshooter]

yep . i work at at a big company you have heard of .Just an hourly employee ,i always told plant manager there just in time plan would bite them in the butt ,it always did ,of course they blamed it on hourly employee's ,who had no control over it

 

[jbtrucker]

Toyota keeps their manufacturing plants supplied . I pickup Intermodal containers from rail yard and deliver to the plant or to couple warehouses. They continued to ship during the Covid shutdown the drop yard was jammed packed

 

[glenwolde]

Yes, a better term than "shortages" is "supply chain disruptions". With those supply chains so long there's a bigger chance something will go wrong along the chain. But even Toyota is running out now and cutting production. They are cutting production 40% in October.

"In a statement, Toyota said it now expects to produce 330,000 fewer vehicles in October than it had previously planned. Its North American operations would likely see production lowered by 60,000 to 80,000 vehicles in October. The company also said global output in September would fall about 70,000 vehicles short of previously lowered production targets."

Toyota to cut production 40% in October because of the chip shortage. - The New York Times

 

[fordson]

Inventory is not a bad word, so long as it's the right inventory………..

 

[mtgianni]

My former company went through that a few decades ago. It is interesting to have a blowing 12" gas line in a downtown area and know that the fitting to stop it is only 12 hours away by car. The flip side to that coin is that on a $5,000 fitting we paid 1/5 of it's cost in taxes every 6 months.

 

[smoothshooter]

The Just In Time process works in Japan because it is a very small country, and the component suppliers are located hours, if not minutes away from the assembly plants.

I never liked that system being used in the US, and always knew it would come up and bite us big-time.

 

[smoothshooter]

My former company went through that a few decades ago. It is interesting to have a blowing 12" gas line in a downtown area and know that the fitting to stop it is only 12 hours away by car. The flip side to that coin is that on a $5,000 fitting we paid 1/5 of it's cost in taxes every 6 months.

Another example of our punitive tax policies.

 

[CAJUNLAWYER]

fascinating .

 

[wood714]

Toyota keeps their manufacturing plants supplied . I pickup Intermodal containers from rail yard and deliver to the plant or to couple warehouses. They continued to ship during the Covid shutdown the drop yard was jammed packed

My 2018 Tacoma had a fuel pump recall. I never had any problems with mine, but during a service the tech told me they had at least a dozen customers cars behind their garage for up to 6 months waiting on a the fuel pump.

They don't keep all parts stocked.

 

[Faulkner]

There is a significant supply chain disruption in our country and it's worsening, especially in the food chain which is something we Americans have taken for granted in the past several generations.

 

[Rustyt1953]

Couple food chain disruption with inflation and you get this:

Grocery prices headed higher: Kroger | Fox Business

 

[handejector]

A good explanation of shortages

Thanks for fixing the title.
We were late getting the rs in this week!

 

[DWalt]

I have spoken earlier about disruption in the supply chain for canned dog food, at least in my area. It's still disrupted.

 

[Muddyboot]

I've noticed shortages at my local Kroger in the last few months. The come and go, lasting a week or so. I wonder if some folks are starting to stockpile again?

 

[LVSteve]

You guys are out on a limb here. Saying that "just in time" doesn't work will get the attention of some Wall Street hit squad. Nobody with an MBA wants to hear it.

 

[JohnRippert]

I keep hearing that the bean counters like to keep inventory levels as low as possible for tax reasons. They seem to forget that keeping customers happy, or just keeping customers, is easier if you have parts in stock to use.

 

[Llance]

Food supply chain is dependent on trucking and suppliers. Your local grocery store has on average not more than 3 days of groceries on the shelf or in the back room. The local grocery warehouse has two weeks in stock of non perishables, boxed and canned goods. Fresh foods and meat they have not more than 5 days.

 

[Llance]

I keep hearing that the bean counters like to keep inventory levels as low as possible for tax reasons. They seem to forget that keeping customers happy, or just keeping customers, is easier if you have parts in stock to use.

One time way back when I first started trucking I picked up a load in California just after Christmas and took it to Maryland. In Maryland they unloaded my trailer and reloaded the same product back in my trailer and had me take it back to California. Why? Simple. California has an inventory tax. By putting the product in transit to anywhere outside of California it is not taxed. And when I brought back to California it was after the tax session so they never had to pay taxes on the product.

 

[The Analyst]

These are all examples which clearly illustrate the significance of keeping goods & services produced in this country. Unfortunately, patriotism took a back seat to profit many years ago and the majority of consumers went along with it. The shareholders continue to be rewarded.