[pea-jay]

Recently, I had an interesting adventure in retailing with the nation’s other big retailer, Target. I was shopping there with my family and saw that a nice pair of shoes that I needed was on sale. I tried on several and settled on the size 10.5 because it seemed to fit the best and because the size 10 was out of stock. After one day of wearing, it became clear the 10.5 was too big so I attempted to exchange the shoes the next day. No such luck, they were still out of stock.. I was told by the clerk, “don’t worry we get shipments everyday on all productsâ€

[Guest]

$this->bbcode_second_pass_quote('patrickjford', 'r')elies on Just-In-Time delivery to cut costs

[mikela]

These last several years economic growth has largely been a result of increased efficiency, which in turn is a result of strategies like cutting payrolls, moving jobs offshore or to contractors without benefits or job security, IT-enabled communication for increased coordination and flexibility, bringing products to market quickly, and just-in-time delivery. The economy would probably be in worse shape if just-in-time delivery had not been implemented as much as it has. And while a healthy economy is not the only thing that matters, a depression can sure make a difference when it comes to unemployment, poverty, hunger, and the safety of those who have the means to weather hard times.

I just bought a digital camera for a family member, a model that only just came to market in time for the holidays, and evidently was rushed because it suffers pretty badly from chromatic abberation. But if they had not rushed it to market, prices for similar products might be higher, and if more cameras were manufactured than were immediately needed, it would be more expensive for the manufacturer and dealers to correct the problem.

I agree that the just-in-time strategy is a bunch of dominoes just waiting to fall, but remember that there is a lot of pressure to keep the system working. If the GM strike wasn't resolved quickly, I wouldn't be surprised if the government stepped in to make sure the money continued to flow. If the supermarket shelves went bare tomorrow and panic buying ensued, it might be a tough time for a while but there will be lots of money made by those who can keep their supply chains running. Panic buying means people are willing to pay a higher price, and there is plenty of incentive for manufacturers and opportunistic businessmen to deliver the goods. Market forces have created just-in-time shippng, and market forces will create whatever other strategies keep the money flowing.

In the long run these long, delicate supply chains will have to become more local and perhaps more robust with socialistic government oversight, but I'm not too worried about the short-term. As long as I have a month's worth of food, water, gasoline, and toilet paper, I think I'll be OK until things start gettin' real bad.

[smiley]

I think Mikela has a point here. It reminds me of this article I read a while back.

Suzuki to cut output as steel shortage widens

$this->bbcode_second_pass_quote('', 'T')OKYO - Suzuki Motor Corp. said on Friday it would scrap plans to boost production by about 13,000 vehicles in December, becoming the second Japanese auto maker forced to scale back output because of a shortage of steel.

The disruption to Suzuki's output plans underscores that the metal's supply problems have begun to beset the whole Japanese car industry and not just Nissan Motor Co. Ltd.

Nissan's recent announcements that it would have to suspend some production this year and may have to cut more next year had been traced back to its aggressive paring of its supplier base when it began a drastic restructuring in 1999.

[Specop_007]

Dont forget about the dockworker strike a few years back. That certainly messed up things for a while as well.

[somethingtosay]

I am a trucker and I agree with Patricfords assessment. The Trucking industry has grown tremendously in the last 20 years or so due to JIT. Many corporations in all sectors of the economy are dependant on transportation, particularily trucking, to maintain a profit and keep their workers employed.

I am worried on the effects when trucking becomes too expensive for the economy to sustain. Montequest has used the term 'asset inertia' to to describe the state we are in. If transportation cannot be sustained then the economy will crash for the reasons particfords outlines as it will have a domino effect.