Auto Industry’s Relationships With Chip Suppliers

Previous OM in the News posts have looked at the chip shortage and automotive production, and how Tesla, for one, is responding. We’re back with an update.

Semiconductor shortages go beyond an increase in demand for autos, port slowdowns, and other pandemic-related issues.

Part of the problem is that the auto industry traditionally has dealt with their suppliers in such a way as to allow short-term changes to their orders. Whereas most chip makers want guaranteed […]

The Interconnected Modern Supply Chain

The supply chain for medical needs during the pandemic has highlighted the weaknesses of modern global supply chain management.

In lean operations, demand management, procurement management, and fulfillment management are integrally interrelated. The removal of redundancies in the supply chain, the reliance on offshoring, and the lack of a larger safety cushion are part of the just-in-time global supply chain design.

During this pandemic, the just-in-time system has backfired, causing critical healthcare supplies to be insufficient in both quantity and location.

Video […]

COVID-19 Exposes the Fragility of Our Global Supply Chains

A chain is only as strong as its weakest link. What happens when several links are weak?

If you think shortages of consumer products and personal protective equipment are worrisome, think again. Despite prior warnings that pandemics may paralyze our supply chains, we may soon run out of many other goods, including food and critical vaccines. Deep, scattered supply chains and reliance on a few global suppliers have hindered our ability to respond quickly to changes in demand. As it turns […]

JIT Risks in the Food Supply Chain

The just-in-time supply chain for grocery store replenishment depends on transportation of food items from around the globe.  Shipping is primarily used to move food items. COVID-19 restrictions have slowed down the movement of goods dramatically.

Most grocery stores carry limited days of inventory and depend on transportation systems all working on time.  The pandemic has exposed a major flaw in just-in-time systems: no extra inventory in the system.

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By |2020-05-07T02:43:31+00:00May 7, 2020|Tags: , , , |
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