© Khunaspix Dreamstime.

An interesting article looking at how the west coast port trouble may trigger a change in supply chain management, with a move away from just-in-time deliveries. With the low cost of money at the moment, companies do not necessarily need small inventories, and can afford to stock up more and invest in warehousing as a precaution against threats to the supply chain. The congestion cost one manufacturer interviewed here $10m in the first quarter, while other, particularly smaller companies, could not afford air freight, so had to build up inventory.

Comment on this article

You must be logged in to post a comment.