Let's see how that 'Just In Time' supply chain works out, shall we?
this post was submitted on 28 Apr 2025
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Whoa whoa whoa, on demand manufacturing allows us to be agile and utilize LEAN manufacturing to provide maximum value to our shareholders by cutting wages, cutting positions and not investing in a single fuckin lick of infrastructure.
Hold on the scrum master is saying something but these doritos are loud! It's a big bag. Engincruncherring something something crunch clean crunch desk crunch your pink crunch sps. Crunch crunch belongings crunch crunch. I think he wants us to get everything to be pink!
You'd think the world would have learned that lesson during and after COVID lockdowns.
Just in time supply chains are too cost effective for alternatives methods to compete.
They're cost effective as long as nothing goes wrong. Remember the knock-on effects of one ship blocking the Suez Canal?
Such events are so uncommon they aren't going to change the supply chain for them.
This particular event isn't solved by supply chain management. The goods aren't coming because the tariffs and uncertainty are too high and distribution contracts don't change that quickly.
There were many articles a few weeks back about how American companies were canceling orders.
For the first round of tariffs, they squeezed the Chinese manufacturers but after the tariffs continued to rise those manufacturers had to say no more and the American companies had no choice but to cancel orders.
There is absolutely no surprise in shipments dropping because we've know for weeks that orders have been cancelled.
Places like Walmart have a contract that the distributor must sell goods to them below a certain price point and no one can hit that price so the goods aren't ordered and nothing is shipped.
Walmart's contracts is the reason shelves will go empty but don't expect Walmart to take the blame when everyone is primed to blame Trump.
Ugh. This is gonna suck.
Oh, I dunno. I reckon we do with a break from rampant materialism. Learn to grow food.
The Donald Slump ^tm
Trump Slump?
You should really file it. Could sell stuff with it.
The Donald Slump. Making Recession Great again
Coming to an empty shelf near you!
If there’s a lack of demand, that should drive prices down. Probably not enough to cover tariffs.
Prices can't go below the cost of production and transport.
A lot of goods are on quite small margins. When the tariffs are bigger than the margin the product becomes uneconomic to ship to the US. This is what you're seeing. There's less demand for shipping because companies have halted shipments to the US.
Unless they can no longer afford to warehouse them.
Warehouse what? They simply stop production. The shipping containers are a lagging indicator. The production stopped when the orders evaporated.
US isn't the only market. Likely to see price drops in Europe when supply will outstrip demand, but still maintain a better margin that the US.
At least until production rates adjust.
Other way round the limited market and loss of profit will result in a temporary drop in price and a subsequent steep increase in price or decrease in quality to make up for the loss of profit that happens when the American market shuts down or slows.