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The 100-Day Supply Chain Review, Part 4: Embracing Downfalls to Improve Business
Anytime an executive order of any kind is brought to the table, one would think that only good can come from such efforts. However, a review of this magnitude could also potentially uncover the gaps in our nation’s supply chains.
May 26, 2021
James Thew AdobeStock 263959295
On Feb. 24, President Joe Biden signed an executive order, enforcing a 100-day review on all U.S. supply chains. This includes identifying risks for certain materials, software and pharmaceuticals. This includes reviewing transportation, production of agriculture commodities and food products. This includes assessing current domestic manufacturing workforce skills, climate change and critical goods. It also includes caring for the resilience and capacity of U.S. manufacturing supply chains.
Auto Makers Retreat From 50 Years of Just in Time Manufacturing
Pressured by pandemic, the hyperefficient supply-chain model pioneered by Toyota is under assault
published : 5 May 2021 at 09:50 New cars are seen parked at Toyota Motor Corp s plant in Onnaing, France. REUTERS
Toyota Motor Corp. is stockpiling up to four months of some parts. Volkswagen AG is building six factories so it can get its own batteries. And, in shades of Henry Ford, Tesla Inc. is trying to lock up access to raw materials.
The hyperefficient auto supply chain symbolized by the words just in time is undergoing its biggest transformation in more than half a century, accelerated by the troubles car makers have suffered during the pandemic.
Adobe Stock
The automotive supply chain phenomenon symbolized as “just in time” is undergoing the biggest transformation in more than half a century, according to the Wall Street Journal. Auto makers are shying away from this model.
Various troubles have accelerated this trend during the Covid pandemic. Sudden swings in demand, freak weather and a series of accidents have led to automakers reassessing their assumptions that they can get the parts needed when necessary.
Just in time supply chain models champion avoiding waste, the article said. Suppliers deliver parts to the assembly line a few hours or days before they go into a vehicle so that manufacturers don’t pay for what they don’t use. But while supply chains become more global and car makers rely on single suppliers, the system isn’t as foolproof as it once was.
Pixabay
Despite popular belief, or what people might think, the Covid pandemic was not the biggest source of disruption for supply chains in 2020, according to the latest Annual Supply Chain Risk Report released this week by supply chain data monitoring, mitigation and risk analytics solutions provider Resilinc.
Man-made events dominated disruption in 2020, accounting for 83% of disruptions. The two greatest disruptors of supply last year were factory fires, and mergers and acquisitions.
Factory fires were up 67% year-over-year (YoY). Naturally some fires are more destructive than others. One fire at a Nittobo plant in Japan disrupted supplies of fiberglass, which caused delays for manufacturers of high-end servers, networking chips and CPUs.