Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Amid Shortages and Delays, Industries Question Old Inventory Strategies
epoch times ^ | 31 October A.D. 2021 | Rachel Hartman

Posted on 10/31/2021 9:36:46 PM PDT by lightman

click here to read article


Navigation: use the links below to view more comments.
first 1-2021-4041-50 next last
With JIT you \ass/u\me/ NO distribution delays due to weather, labor strikes, "pandemics", etc.
1 posted on 10/31/2021 9:36:46 PM PDT by lightman
[ Post Reply | Private Reply | View Replies]

To: lightman

JIT was adopted by the Japanese because of real estate for warehouses is in short supply and very expensive. For most American businesses to adopt the process it’s like wearing a raincoat in the desert, we have plenty of land and real estate was fairly reasonable until the communist inflation showed up.


2 posted on 10/31/2021 9:40:17 PM PDT by WMarshal ("Those who would give up essential liberty, to purchase a little temporary safety, deserve neither.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: lightman

The taxes on holding inventory are horrendous.
I remember my dad saying decades ago it got so bad his company made them totally Destroy brand new engines to keep from having to pay the sky-high inventory taxes.


3 posted on 10/31/2021 9:43:39 PM PDT by TianaHighrider (God bless President Trump. Prayers for PDJT and his loyal supporters.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: lightman

Yea, it always struck me as STUPID, and hopefully that wonderful system will end. We have TONS OF ROOM for warehouses here in Texas and while they do cost money to operate, they also have advantages, such as allowing bulk purchases.

Also, the idea that car companies could fall flat on their faces over COMPUTER CHIPS, of all things. One could probably fit all the chips used by Toyota in a year in a single Home Depot, as they’re not exactly hogs when it comes to storage volume. No excuse for that. Tires, seats, fuel tanks, yea...they do take up room. Not chips.


4 posted on 10/31/2021 9:47:35 PM PDT by BobL (I shop at Walmart and eat at McDonald's, I just don't tell anyone, like most here.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BobL

Remember when every small automotive shop had an array of V=belts and serpanitine belts hanging high on a wall fetched down by an extension pole?

They weren’t depending on the local NAPA doing JIT!


5 posted on 10/31/2021 9:51:18 PM PDT by lightman (I am a binary Trinitarian. Deal with it!)
[ Post Reply | Private Reply | To 4 | View Replies]

To: lightman

No purchasing agent in the world will be getting fired for excess inventory or laying in safety stock that would have been unthinkable 2 years ago.


6 posted on 10/31/2021 9:51:41 PM PDT by bigbob
[ Post Reply | Private Reply | To 1 | View Replies]

To: TianaHighrider

Excellent point on inventory taxes—and they vary by location.

The smart business (imho) will keep a large inventory—but go wherever they need to find a location (including offshore if necessary) where it will not be subject to tax.


7 posted on 10/31/2021 9:54:37 PM PDT by cgbg (A kleptocracy--if they can keep it. Think of it as the Cantillon Effect in action.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: lightman

Just In Case, eh? ...prepping hits the business environment.


8 posted on 10/31/2021 9:56:18 PM PDT by goodnesswins (....pervert Biden & O Cabal are destroying America, as planned.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: goodnesswins

JIC was always the norm November - March in the northeast snowbelt.

Now it is just year ‘round.


9 posted on 10/31/2021 9:58:39 PM PDT by lightman (I am a binary Trinitarian. Deal with it!)
[ Post Reply | Private Reply | To 8 | View Replies]

To: lightman

lol, are they calling JIC new? Then there was “safety stock”


10 posted on 10/31/2021 10:11:47 PM PDT by NonValueAdded (Let's go Brandon!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: nutmeg

bkmk


11 posted on 10/31/2021 10:20:59 PM PDT by nutmeg (NEVER trust democRATs with national security)
[ Post Reply | Private Reply | To 1 | View Replies]

To: lightman; Tilted Irish Kilt; Pollard; Roman_War_Criminal; Diana in Wisconsin; greeneyes; ...

Ping


12 posted on 10/31/2021 11:49:16 PM PDT by metmom (...fixing our eyes on Jesus, the Author and Perfecter of our faith…)
[ Post Reply | Private Reply | To 1 | View Replies]

To: WMarshal

That is certainly a component, but there are other things in play, such as tying up more capital (a major one), supplies getting old (which applies to more than you might think), an extra step in storing and relocating, and paying taxes on the stuff sitting in the warehouses (a very major one).


13 posted on 11/01/2021 12:08:02 AM PDT by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
[ Post Reply | Private Reply | To 2 | View Replies]

To: lightman

Prepping is a JIC accounting system.


14 posted on 11/01/2021 1:10:27 AM PDT by PTBAA
[ Post Reply | Private Reply | To 1 | View Replies]

To: lightman
Just-In-Case (JIC) can be overdone and requires diligence in trimming it down. Just-In-Time (JIT) requires significant analytical skills which many companies don't want to pay for, or they think the consultant's forecasting software will solve their problems.

JIT is usually based on the delusion that everything is always available, the supply chain works perfectly all the time, nothing will fail testing, and there is no adverse weather.

JIT often expose failures within a company, from inbound loading dock to store back rooms. Instead of fixing the problems, the companies lie to themselves about how effective their systems were.

15 posted on 11/01/2021 4:59:14 AM PDT by T.B. Yoits
[ Post Reply | Private Reply | To 1 | View Replies]

To: lightman

The CORE PROBLEM WAS OFFSHORING US INDUSTRY TO THE 3rd WORLD.


16 posted on 11/01/2021 5:00:46 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TianaHighrider
Make things in the USA. Problem solved.

Tariff is NOT a four letter word.

17 posted on 11/01/2021 5:02:00 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
[ Post Reply | Private Reply | To 3 | View Replies]

To: lepton
Does it matter to any of you Free Republic globalist Free Traitors™ WHERE things are made?
18 posted on 11/01/2021 5:03:33 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
[ Post Reply | Private Reply | To 13 | View Replies]

To: T.B. Yoits

A really high import tariff would knock the legs out from under Free Traitor™ grip on the economy.


19 posted on 11/01/2021 5:04:40 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
[ Post Reply | Private Reply | To 15 | View Replies]

To: WMarshal

The main benefit of JIT is less inventory costs. One of these is tax as mentioned above. Also, lost opportunity costs as well as storage costs. If you are paying for that inventory you can not make profits doing something else with that money. We may have room but you have to pay for the use of that room. I guess there are more costs also.


20 posted on 11/01/2021 5:38:18 AM PDT by jimfr
[ Post Reply | Private Reply | To 2 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-50 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson