Just in time: why we keep running out of everything | It's Complicated
ฝัง
- เผยแพร่เมื่อ 26 ม.ค. 2022
- The global supply chain seems to be in a perpetual state of crisis. Whether its groceries, petrol or micro-chips for electric vehicles, everything just keeps running out. But why does it keep happening?
Subscribe to The Guardian on TH-cam ► bit.ly/subscribegdn
The crux of the matter lies in the way our global supply chain works, and how companies have come to rely on a unique system of efficiency, dubbed 'just in time', which developed in Japan in the late 1960s and early 70s. Josh Toussaint-Strauss explores how the prevalence of just in time supply systems are contributing to a global supply chain crisis
The Guardian publishes independent journalism, made possible by supporters. Contribute to The Guardian today ► bit.ly/3biVfwh
Website ► www.theguardian.com
Facebook ► / theguardian
Twitter ► / guardian
Instagram ► / guardian
#supplychain #itscomplicated #economics
I was a manufacturing manager in the early 80's when "just in time" was the darling of all the top business schools. It was obvious to me than that all " just in time" manufacturing did was force the suppliers to hold the large manufactures inventory. It was never about efficiency of manufacturing but more about saving the cost of that inventory.
I worked as a consultant in retail and it was the same there. What went really wrong was outsourcing IT as the board was (a) captured by the consultancy (b) ignirant of how much value they got from internal IT which was far more central to the business than the donkeys realised. Following trends tends to be a way for consultancies to part compznies from a huge amount of money...twice as they are brought in to bring the service back in house
The problem I have with just in time is that you are increasing risk. The inventory is like an investment to reduce risk, it should be seen as necessary insurance.
That's the American bastardization of lean
“Efficiency” is not the only benefit to manufacturers like Toyota, quality is also improved. If a component has been made incorrectly, and someone on the line notices, they can inform the person making the component and the issue is rectified almost immediately. In a “just in case” situation, that component could have been made months ago, meaning you have potentially months worth of defective components. Sure, if you are a retailer selling toilet paper, then Just in Time is really only for the cost benefit, but cost is not the only benefit in general.
Here in Germany we are not running out of anything. Whenever I go to the supermarket there isn't a single empty shelf.
Perhaps the problems with "just in time" don't effect countries that haven't brexited.
I agree with the assumption. In Denmark there has not been any supply problems. I blive that UK has the same problem as other countries in Europe, but brexit massivly exacerbate the supply problems.
Here in the England, we are not running out of anything and have full shelfs, until news articles cause mass hysteria and people buy £60 of petrol.
@@sk00p but you are having great party's lol
@@sk00p you mean filling up?
It’s affecting America too. To be specific, near Denver, CO. We’ve been seeing it for awhile now
I think that retailers like running out of some items because it makes consumers want to "stock up" which means that consumers will carry at least part of the cost of storing excess inventory.
Makes little sense if they can't match demand they are leaving money on the table and opening the door to a more efficient competitor.
Truth is without Brexit you probably would be having chicken AND toilet rolls, wouldn't that be wonderful? Us in the EU are still struggling to get micro-chips and construction products (such as timber) in time but we are appalled to see what the UK has been going through. In other words it's businesses that suffer more from the pandemic in the EU, we haven't had any shortages in grocery stores. High five brexiteers!
For the UK, Brexit is one of the main reasons for disruption.. you’ll need a lot of ‘just in case’ inventory… think alone of 10 miles of HGV lorries, standing for 24 hours. That is a lot of money frozen.
I grew up in the country side in the 90’s you’d always have a back up. I still do that.
Same here, rural and remote. We can be cut off because of weather, and are always the last to be restored. We have always kept a pantry, plus we grow veg and swap with friends for eggs, buy locally made cheese and bread. We dont mind paying £4 for a huge loaf of sourdough, which lasts most of a week and keeps a local business going.
It wasn't a toilet paper shortage it was a Braincell shortage.
The supply chain problem isn’t global as the author suggests but British (mainly). The EU block doesn’t have problems related to the supply chain, as much as in the UK.. Brexit?!
There is no issues, I could literally go Lidls and get these items right now.
So the bottom line answer, as it is to every "why" question in business, is money and profit. Save a buck here, there, worry about problems later.
Toyota’s JIT system works because its suppliers’ factories are nearby, so could make multiple deliveries a day if required. JIT doesn’t work if lead times are three months.
Brexit! Brexit. What is it about Brexit you neither understand? Or acknowledge. The greatest self defeating act by any country. In our lifetime and your ignoring it!
So very true sir!
Thank you, I found that very informative!
Strange as little Malta hasn't run out of anything ! Surprised Pikachu face !
Could it be that there was something something in 2016 in the UK ?????
What do you mean 2016 UK explain more if you can bro?
@@TooRiskyHD June 23rd 2016 referendum ???
@@irminschembri1081 arr got you but this was going on before 2016 I think it’s just how the global supply chain works it’s outdated system
Lots of simplistic, or even simply false, information in this video. Toyota tends to be more resilient to supply chain shortages than many competitors because it can react faster to changes in demand, and has much better business intelligence for its supply chain.
That’s the thing, Toyota has reacted and amended to their plan. They had the foresight to plan ahead of “what if”. The overwhelming amount of companies and supply chains have no worked that in.
Toyota thought of it, they probably also thought of “what if something goes wrong?” From what I’ve studied in economics in university days was “always have a back-up, have a contingency”
If you listened they legit said they used to do it quite a few companies still do it it’s just to keep profits running
Needs to be "just the needs"
Ironically, Japan was one of the last (developed) countries to implement "just in time" practices in its shops and stores, etc. It wasn't until (7-11?) ,which was then still an American company (now, it's owned by the Japanese side, if I recall) introduced "POS" (point of sale), which basically is using barcode scanners to check stock and streamline inventory to a "just in time model", that Japanese shops came into line with other countries.
Wow interesting Why was it that Japan took longer?
Smart if used as an official method of inventory.
Completely incorrect. Toyota (Japan) was the architect of just in time.
This sounds like a huge business opportunity. Get a large enough warehouse in a very impoverished city where you could store excess “just incase” inventory for multiple companies.
Since you’re not selling products yourself, you don’t need to worry about being in an area with customers. You can be in a place where rent/purchasing a warehouse is relatively cheap, and you’d also be bringing jobs to that city so hopefully you could work out some kind of deal with the city where you’re eligible for tax breaks/cheaper power..etc
Because it has been DONE ON PURPOSE.
Haven't felt or seen a lack of anything personaly, from the EU, but yeah that's the problem with globalized supply chains in a more & more unstable world.
JIT is marvelous technique...
works well here in scandinavia.
yes
Only Finland was prepared with a WW2 inspired emergency store of PPE, in a mooutain somewhere.
A bit of a simplistic explanation..
Jit is about reducing batch sizes to an ideal of 1..
The emphasis is about improving processes and eliminating setup costs with flexible manufacturing, work centers and staff training.
The nhs would greatly benefit from this.. It still operates as a 1970's manufacturer.. Think of patients as raw material and you get the idea.. Lots of big waiting rooms across hospitals and all offering just one service...
Why am I writing this.. No one cares 🤣
Oh they've done it to the NHS. When did you last use it (I mean hefore 2020)? In my part of the UK we have a local hospital & A&E 25 minutes from home that has been down graded to a minor injuries (after a £25m refit) and some OPD. All childrens health is now centralised at the next hospital which is another hours drive down to road. Radiation therapy for cancer is at another hospital another further hours drive, meaning seriously ill patients are being driven by volunteer drivers 2hours+ each way for daily 20 minute treatments. This is utter madness.
@@lat1419 that's actually bigger batches.. That's the nhs moving into the 1960's 😂
@@pr5x yes we didn't specify which century either.
@@pr5x but we are making progress, too slowly, but progress. If anything the H&her may have the Streisand effect. 😁
Thank you for explaining that. So that is why I have to wait 3 weeks for spare parts for my Toyota. I suppose for other products Brexit would add to the problem. Trucks waiting so long in queues, hours spent on paperwork and shortages of foreign workers to mention a few.
In any case time is precious...
4:52 I feel that the solution would be “just in crossover.”
BREXIT!
Not at my supermarket they aren’t
Top.
What about truckers staying in Ottawa?
Love you all ❤️ from Bangladesh 🇧🇩🇧🇩🇧🇩🇧🇩🇧🇩
Try and find baking parchment
Take Just you need mate.
4:33 there's a typo in the subtitles, it's inventories, not infantries 😂
Thanks for flagging, this has been fixed!
Oh if we just had a Hilbert-Bellman-Jacobi equation...
Brexit :(
0:12 answer: wastage
Products are being made. The issue is poor leadership.
How about a few messing around with supply chains due to unnecessary political polices. That is why people need their own parallel society with supply chains.
Johnny was given justice! ALL REAL domestic violence victims were given a voice! Those who lie are exposed! Justice for Johnny!
Little secret here for you all when we say a product is in short supply it very rarely is we just say that so you very clever people buy it all and we make money 💰💰💰
Is that legal in Britain? In my country it is not especially if it is a staple.
What a BS. Open your eyes.
Shoplifters?
Imagine taking the guardian seriously.
In your map Taiwan is marked as part of China. Please be aware that we're an independent Country.
We can have "just in case". Just means lower standard of living in general. Easily 10%+ lower.
Is this video for kids? This voice over sounds like it is.
Because of lock-downs and restrictions, figure it out.
Not sure who put this together but it’s largely nonsense. 3PL is just in time so goods are laid off close to the end user.
👍💝🇧🇩
you don't know who put it together? 5:05
@@georgplaz was bored by then 😂😂
Yeah, it's nonsense right? Then why are global supply chains failing? 3PL is a subset of JIT, and the consumer only got a part of the benefit. Workers didn't, as the natural development was to offshore labour costs too. Hence the rise of the working-class poor in service industry jobs on minimum wage, and the decline in the proportion of GDP spent on labour costs over the last 4 decades in Developed countries.
Stop blaming brexit
😢
Brexit
Toyota🤮100%
Brexit