Globalization has made it possible to squeeze inventories down to nothing. Just-in-time delivery means these hyper-efficient, hyper-optimized supply chains can deliver the promise of owning no inventory and still meeting customer demand.
Offshoring was the name of the game. First, Japan was the manufacturing location of choice. When Japan was too expensive, companies moved production to China. When China was too expensive, production moved to the Philippines and Vietnam.
All of this worked, until it didn’t.
The supply chain disruptions have shown just how many links there are in that supply chain and how many opportunities exist for delay and outright breakdown.
Host: Victor Menasce