$this->bbcode_second_pass_quote('', '[')u]Just-in-time supply lines could fall victim to financial crisis
by Sam Abuelsamid
autoblog
Jan 1st 2009
One of the key improvements in automotive manufacturing efficiency over the past three decades may soon fall victim to America's current economic turmoil. Toyota made "just-in-time manufacturing" a common term and it has since been adopted by the entire industry.
Unfortunately, in order for just-in-time to work, assembly plants need a stable supply base that can reliably deliver the right parts at the right time, every time. If a company's suppliers are in danger of shutting down due to lack of funds, they cannot reliably function without an inventory bank of parts. The net-net is that if one or more automakers goes belly up in the coming months, numerous suppliers are likely to follow that company down the drain.
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