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(Vox)   How can we fix the broken supply chain?   (vox.com) divider line
    More: Awkward, Supply chain management, Logistics, Commercial item transport and distribution, Truck driver, Trucking industry in the United States, Supply chain, truck drivers, truck chassis  
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884 clicks; posted to Business » on 08 Nov 2021 at 8:17 AM (28 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



30 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2021-11-07 10:42:18 PM  
Crypto?  Agile?
 
2021-11-07 10:53:46 PM  
Stop trying to do 0-inventory, just in time chains. There is NO slack, and no give anywhere in the chain at all.

It used to be (60s-80s) that many factories kept enough materials on hand to keep running for up to 30 days just in case something happened to the supply of parts and materials they needed.

Snowstorm delays your parts for 10 days? No problem. Ship gets stuck in a foreign port for a week? No problem. Your parts supplier has a fire at their factory? You've got 30 days for them to recover or for you to find another supplier.

BUT, inventory costs money. It will eventually be a product and make you some profit, but to accountants, that's UNACCEPTABLE that you have inventory/assets that aren't making you money for THIRTY WHOLE DAYS.

Just In Time is the worst thing to happen to manufacturing since Henry Ford.

Oh, and pay your $%)(*#$% workers, too.
 
2021-11-08 2:28:32 AM  

JustSurfin: Stop trying to do 0-inventory, just in time chains. There is NO slack, and no give anywhere in the chain at all.

It used to be (60s-80s) that many factories kept enough materials on hand to keep running for up to 30 days just in case something happened to the supply of parts and materials they needed.

Snowstorm delays your parts for 10 days? No problem. Ship gets stuck in a foreign port for a week? No problem. Your parts supplier has a fire at their factory? You've got 30 days for them to recover or for you to find another supplier.

BUT, inventory costs money. It will eventually be a product and make you some profit, but to accountants, that's UNACCEPTABLE that you have inventory/assets that aren't making you money for THIRTY WHOLE DAYS.

Just In Time is the worst thing to happen to manufacturing since Henry Ford.

Oh, and pay your $%)(*#$% workers, too.


JIT manufacturing is an example of dangerous, inflexible overoptimization.

Tax incentives/punishments to drive manufacturing back on shore. Overseas manufacturing is an environmental/human rights nightmare. Shorten geographical distances in supply chains. It helps.
 
2021-11-08 4:10:57 AM  
It requires long term investment and executives not getting a bonus every quarter.

That f*cking sh*t ain't never gonna happen.
 
2021-11-08 6:44:22 AM  

JustSurfin: Stop trying to do 0-inventory, just in time chains. There is NO slack, and no give anywhere in the chain at all.

It used to be (60s-80s) that many factories kept enough materials on hand to keep running for up to 30 days just in case something happened to the supply of parts and materials they needed.

Snowstorm delays your parts for 10 days? No problem. Ship gets stuck in a foreign port for a week? No problem. Your parts supplier has a fire at their factory? You've got 30 days for them to recover or for you to find another supplier.

BUT, inventory costs money. It will eventually be a product and make you some profit, but to accountants, that's UNACCEPTABLE that you have inventory/assets that aren't making you money for THIRTY WHOLE DAYS.

Just In Time is the worst thing to happen to manufacturing since Henry Ford.

Oh, and pay your $%)(*#$% workers, too.


Oh, so you want to pay more for your hand-made vehicles?  Soon only the richest kings of Europe will be able to afford an autocarriage!
 
2021-11-08 7:10:46 AM  

The Googles Do Nothing: Crypto?  Agile?


Has anyone tried putting performance reviews into _four_ boxes?
 
2021-11-08 8:22:36 AM  
Aside from the necessities, don't buy so much uneeded stuff.
 
2021-11-08 8:24:47 AM  
Aren't the ports operated by private companies?  If only there were some way to attract workers for your company, and supporting trucking companies.  Maybe someone should do something about that, rather than waiting for a government handout.  If the GQP had their way the military would be activated to work for free at the ports for two years to "fix" the problem.
 
2021-11-08 8:25:52 AM  
Fark user imageView Full Size
 
2021-11-08 9:20:23 AM  

skinink: Aside from the necessities, don't buy so much uneeded stuff.


Came here to say this. People are addicted to buying crap they don't need.
 
2021-11-08 9:38:57 AM  

Northern: Aren't the ports operated by private companies?  If only there were some way to attract workers for your company, and supporting trucking companies.  Maybe someone should do something about that, rather than waiting for a government handout.  If the GQP had their way the military would be activated to work for free at the ports for two years to "fix" the problem.


A lot of places are doing just that right now, the problem has been building for decades, and it's not going to be fixed by 1 year of wage growth.  Higher wages help individual companies get a larger share of the available workers, however decades of stagnant wage growth have caused a situation where not enough people were going into the industry to begin with and the last few years have seen a whole bunch of older people leave the industry.
 
2021-11-08 9:45:10 AM  
JIT seems to be a favorite whipping boy of fark, and I've had a few cracks at it myself... but I think maybe we can point a an even larger trend that includes both JIT, Globalization, and more.

This quote made me think of it:
"Almost half of the [trailers for trucks to haul containers] at the Los Angeles-Long Beach port complex are operated by private leasing companies."

I would present: We're seeing the shell game of companies externalizing every facet of their business except for the profit. I know that the point of a business is to maximize profit, but I'm not talking about cutting costs, I'm talking about just completely leaving any part of the business they are in that is only marginally profitable and externalizing that cost somewhere else.

JIT is about removing your warehousing costs and pushing it off onto your sub manufactures.
McDonalds doesn't make money on burgers, they make it on their real estate rental. See also what happened to Toys R Us and the quoted example above about trailers.
For Amazon, they don't "employ" much of their million of warehouse workers, they just contract them from a separate company.
You see it on the far end too, no need to recycle or otherwise deal with whatever you made, that's someone else's job,.

It used to be that a company would do the reverse when they got big. You would buy up and own every single part of your supply chain because then you could minimize your overall cost and risk (depending how deep you let the monopoly go this has other issues too, but that's a different topic).

Now the game is to self-bust your company so that any profit loss is cut out to someone else, ideally in the global south. Except the issue is that you only maximized your PROFIT. Your RISK is now even worse because you are still depending on the output of whatever those barely-sustainable sub-companies are to make your final product.
 
2021-11-08 10:04:01 AM  

JustSurfin: Stop trying to do 0-inventory, just in time chains. There is NO slack, and no give anywhere in the chain at all.

It used to be (60s-80s) that many factories kept enough materials on hand to keep running for up to 30 days just in case something happened to the supply of parts and materials they needed.

Snowstorm delays your parts for 10 days? No problem. Ship gets stuck in a foreign port for a week? No problem. Your parts supplier has a fire at their factory? You've got 30 days for them to recover or for you to find another supplier.

BUT, inventory costs money. It will eventually be a product and make you some profit, but to accountants, that's UNACCEPTABLE that you have inventory/assets that aren't making you money for THIRTY WHOLE DAYS.

Just In Time is the worst thing to happen to manufacturing since Henry Ford.

Oh, and pay your $%)(*#$% workers, too.


My factory finally managed to get our labor issue sorted out, kinda.  It was ultimately money that did it.  Starting wages are up 60% on my shift over the last 2 years.  Now the issue there is experienced labor.  When I was a carpenter they used to say you wanted 1 apprentice for every 2 journeymen.  Factory work is a little less demanding but it's still rough managing a bunch of people when too many of them are new.

Luckily we make an expensive product that's becoming more and more popular every year.  We're outgrowing our factory and we're dealing with supply issues of our own.  We're ordering as much raw material as we can, however the rate in which we go through materials has more than doubled in the last few years and our storage hasn't caught up, yet.  Building new warehouses and material tanks takes time.
 
2021-11-08 11:05:31 AM  
The fall of civilization.
 
2021-11-08 11:40:52 AM  

JustSurfin: Stop trying to do 0-inventory, just in time chains. There is NO slack, and no give anywhere in the chain at all.

It used to be (60s-80s) that many factories kept enough materials on hand to keep running for up to 30 days just in case something happened to the supply of parts and materials they needed.

Snowstorm delays your parts for 10 days? No problem. Ship gets stuck in a foreign port for a week? No problem. Your parts supplier has a fire at their factory? You've got 30 days for them to recover or for you to find another supplier.

BUT, inventory costs money. It will eventually be a product and make you some profit, but to accountants, that's UNACCEPTABLE that you have inventory/assets that aren't making you money for THIRTY WHOLE DAYS.

Just In Time is the worst thing to happen to manufacturing since Henry Ford.

Oh, and pay your $%)(*#$% workers, too.


Those inventory reserves are the business equivalent of fat. Having some is necessary, having a lot in lean times can be beneficial. Too much however has obvious bad effects (warehousing costs, wastage, real estate, etc), and the necessary level is different for different businesses in different places.

As is, tenure at most organizations for leadership staff often doesnt include pepple who have been through periods of constraint, or their incentives are built such that they arent led to consider such in the future. The drive to compete and be lean at peak performance, getting rid of the fat, is intense, and the cost of failure can be high.

And thats great for hummingbirds and bodybuilders. Hummingbirds can starve in literally hours however and bodybuilders dont stay in peak shape all the time.
 
2021-11-08 12:43:27 PM  

zbtop: JustSurfin: Stop trying to do 0-inventory, just in time chains. There is NO slack, and no give anywhere in the chain at all.

It used to be (60s-80s) that many factories kept enough materials on hand to keep running for up to 30 days just in case something happened to the supply of parts and materials they needed.

Snowstorm delays your parts for 10 days? No problem. Ship gets stuck in a foreign port for a week? No problem. Your parts supplier has a fire at their factory? You've got 30 days for them to recover or for you to find another supplier.

BUT, inventory costs money. It will eventually be a product and make you some profit, but to accountants, that's UNACCEPTABLE that you have inventory/assets that aren't making you money for THIRTY WHOLE DAYS.

Just In Time is the worst thing to happen to manufacturing since Henry Ford.

Oh, and pay your $%)(*#$% workers, too.

Those inventory reserves are the business equivalent of fat. Having some is necessary, having a lot in lean times can be beneficial. Too much however has obvious bad effects (warehousing costs, wastage, real estate, etc), and the necessary level is different for different businesses in different places.

As is, tenure at most organizations for leadership staff often doesnt include pepple who have been through periods of constraint, or their incentives are built such that they arent led to consider such in the future. The drive to compete and be lean at peak performance, getting rid of the fat, is intense, and the cost of failure can be high.

And thats great for hummingbirds and bodybuilders. Hummingbirds can starve in literally hours however and bodybuilders dont stay in peak shape all the time.


In times of inflation, inventory can be a profit center.
 
2021-11-08 12:44:45 PM  

Northern: Aren't the ports operated by private companies?  If only there were some way to attract workers for your company, and supporting trucking companies.  Maybe someone should do something about that, rather than waiting for a government handout.  If the GQP had their way the military would be activated to work for free at the ports for two years to "fix" the problem.


More or less....but more importantly, it's not just the ports.  The entire logistics system, of which a port just just one component, is privately owned, so making any changes whatsoever needs to be navigated through the profit-minded lenses of every participant along the way.  Good luck doing that in any expedited fashion short of imposing martial law.

And that's before you get to the disconnected reality of an excel spreadsheet that implicitly assumes there is an infinite labor pool that can supply the drivers and other workers anywhere in the country.  Along the way, there will also be regulatory and legal constraints such as the Jones Act that need to be worked around....and that's certainly not a fast process.

I think the natural solution will come from an economic crash that kills off companies with weak supply chains and price-sensitive demand curves.
 
2021-11-08 1:32:25 PM  

JustSurfin: Stop trying to do 0-inventory, just in time chains. There is NO slack, and no give anywhere in the chain at all.

It used to be (60s-80s) that many factories kept enough materials on hand to keep running for up to 30 days just in case something happened to the supply of parts and materials they needed.

Snowstorm delays your parts for 10 days? No problem. Ship gets stuck in a foreign port for a week? No problem. Your parts supplier has a fire at their factory? You've got 30 days for them to recover or for you to find another supplier.

BUT, inventory costs money. It will eventually be a product and make you some profit, but to accountants, that's UNACCEPTABLE that you have inventory/assets that aren't making you money for THIRTY WHOLE DAYS.

Just In Time is the worst thing to happen to manufacturing since Henry Ford.

Oh, and pay your $%)(*#$% workers, too.


Why do u hate lazy sit at home stock owners??
 
2021-11-08 1:33:44 PM  

KRSESQ: skinink: Aside from the necessities, don't buy so much uneeded stuff.

Came here to say this. People are addicted to buying crap they don't need.


Courtesy of mass media advertising
 
2021-11-08 3:40:05 PM  

Nuclear Monk: Northern: Aren't the ports operated by private companies?  If only there were some way to attract workers for your company, and supporting trucking companies.  Maybe someone should do something about that, rather than waiting for a government handout.  If the GQP had their way the military would be activated to work for free at the ports for two years to "fix" the problem.

More or less....but more importantly, it's not just the ports.  The entire logistics system, of which a port just just one component, is privately owned, so making any changes whatsoever needs to be navigated through the profit-minded lenses of every participant along the way.  Good luck doing that in any expedited fashion short of imposing martial law.

And that's before you get to the disconnected reality of an excel spreadsheet that implicitly assumes there is an infinite labor pool that can supply the drivers and other workers anywhere in the country.  Along the way, there will also be regulatory and legal constraints such as the Jones Act that need to be worked around....and that's certainly not a fast process.

I think the natural solution will come from an economic crash that kills off companies with weak supply chains and price-sensitive demand curves.


Economists predict the supply chain will be more or less back to normal in about a year or year and a half.  Here in the USA we have not faced a shortage of consumer goods since the Great Depression, and it's making conservative snowflakes upset especially this close to the holidays.
In reality, the USA isn't the center of the global supply chain anymore.  It's focused around China, by design from US politicians and business people to undercut US labor (wages), in a scheme to increase short term profits.
Logistics companies are working with US CDL schools and training armies of new truck drivers plus recruiting port staff.  This would be a good opportunity for the federal government to pitch in to expedite the process and in exchange form strong labor unions throughout the supply chain from port to consumer.
They won't do that of course, because reasons.  Here in MA the governor has the National Guard driving school busses rather than reinstate bus drivers as government union employees with liveable wages and retirement.
Admittedly I don't know what #46 in thinking here.
 
2021-11-08 4:16:37 PM  
Things will get back to normal unless politicians get involved. There's nothing they can't make worse by picking winners.
 
2021-11-08 6:21:36 PM  

Linux_Yes: KRSESQ: skinink: Aside from the necessities, don't buy so much uneeded stuff.

Came here to say this. People are addicted to buying crap they don't need.

Courtesy of mass media advertising


...which just takes full advantage of people's greed and desire and fomo.
 
2021-11-08 6:33:38 PM  
This backlog is a clear reminder that there aren't enough workers or facilities to take in all the products that are being shipped to the United States right now.

Fark user imageView Full Size
 
2021-11-08 6:48:29 PM  

BumpInTheNight: The Googles Do Nothing: Crypto?  Agile?

Has anyone tried putting performance reviews into _four_ boxes?


That makes me wonder. If a auto salesman goes to their boss for a raise, does the boss whip out the four squares?
 
2021-11-08 6:55:26 PM  

Northern: Nuclear Monk: Northern: Aren't the ports operated by private companies?  If only there were some way to attract workers for your company, and supporting trucking companies.  Maybe someone should do something about that, rather than waiting for a government handout.  If the GQP had their way the military would be activated to work for free at the ports for two years to "fix" the problem.

More or less....but more importantly, it's not just the ports.  The entire logistics system, of which a port just just one component, is privately owned, so making any changes whatsoever needs to be navigated through the profit-minded lenses of every participant along the way.  Good luck doing that in any expedited fashion short of imposing martial law.

And that's before you get to the disconnected reality of an excel spreadsheet that implicitly assumes there is an infinite labor pool that can supply the drivers and other workers anywhere in the country.  Along the way, there will also be regulatory and legal constraints such as the Jones Act that need to be worked around....and that's certainly not a fast process.

I think the natural solution will come from an economic crash that kills off companies with weak supply chains and price-sensitive demand curves.

Economists predict the supply chain will be more or less back to normal in about a year or year and a half.  Here in the USA we have not faced a shortage of consumer goods since the Great Depression, and it's making conservative snowflakes upset especially this close to the holidays.
In reality, the USA isn't the center of the global supply chain anymore.  It's focused around China, by design from US politicians and business people to undercut US labor (wages), in a scheme to increase short term profits.
Logistics companies are working with US CDL schools and training armies of new truck drivers plus recruiting port staff.  This would be a good opportunity for the federal government to pitch in to expedite the process and in ...


It will sort itself out eventually, one way or another.   Hopefully it's a gentle correction but I imagine a poorly-timed/placed natural disaster could be the last straw for something more catastrophic.  I wonder what the political damage will be, since there's not a ton that politicians can really do to fix it expediently.
 
2021-11-08 7:36:19 PM  
Ban sales people. The only people allowed people allowed to write contracts are the shift managers of the plants/or business that work there.

Any other solutuon basically would be mass hypnosis or mind control to erase the idea of peak capitalism and 5% growth and mandatory shareholder profit from human memory.
 
2021-11-08 8:23:05 PM  

KB202: Linux_Yes: KRSESQ: skinink: Aside from the necessities, don't buy so much uneeded stuff.

Came here to say this. People are addicted to buying crap they don't need.

Courtesy of mass media advertising

...which just takes full advantage of people's greed and desire and fomo.


The best marketing produces its own market.  Propaganda that convinces people over time what they want.

Pepsi CEO: we dont sell soda. We sell dreams
 
2021-11-08 9:03:01 PM  
My bet is on a half off, everything must go Spring Sale.
 
2021-11-08 9:57:11 PM  
If there's one thing I've learned in my time on Fark, it's that central planning has never failed.
 
2021-11-08 11:22:40 PM  
Pay warehouse and dock workers $100k salary.  Labor shortages would no longer be a problem.
Temporarily store empty containers in unused rangeland or other space to free up truck chassis.  Don't let ships leave port after unloading unless they have a full load of containers to take back to their source port, even if most of those containers are empty.
 
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