Re-evaluating the just-in-time model: manufacturers react to disruptions

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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.