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I listened to a report on the radio about the expected backorders resulting from the crisis in Japan. The Japanese manufacturers that assemble cars and trucks in the US are already reducing shifts due to expected shortages. No word from the big 3 yet as of yesterday, the day of the report.
I specialize in inventory control and the auto industry were the pioneers of 'just in time' inventory management. The automakers run their assembly parts inventories really tight. Delays in the supply chain usually have an immediate impact on production.
I listened to a report on the radio about the expected backorders resulting from the crisis in Japan. The Japanese manufacturers that assemble cars and trucks in the US are already reducing shifts due to expected shortages. No word from the big 3 yet as of yesterday, the day of the report.
I specialize in inventory control and the auto industry were the pioneers of 'just in time' inventory management. The automakers run their assembly parts inventories really tight. Delays in the supply chain usually have an immediate impact on production.
I used to drive long haul, and got stuck on the auto circuit for a few weeks while a couple of guys went on vacation. I have seen stuff pulled off a truck, and put down the assembly line.
So I wouldn't be suprised if many things don't get scarce in the next few weeks becouse of lack of parts.
When it all happened I started looking at different things owned by Japanese corporations. I found that the majority of it was manufactured in China, so outsourcing may save the day here.
I know the big 3 all insist that no one supplier deliver too high a percentage of a given part. My sister works for Autoliv and they make airbags. They recently bought out a competitor and it bumped them up to 60% of GM's air bags. And GM is giving them fits about having such a large percentage of that part. Even though the parts are coming from multiple plants in Mexico, and the USA.
Having 50% of your parts coming from one source, and having that source shut down, could affect your production line, But it will not bring it to a halt. And I suspect during any shortage the other suppliers will attempt to step up their production.
A real good friend of ours is the office manager for a Japanese company that supplies
parts for Harley Davidson motorcycle production. She told us last night that the company was already worrying about parts availability as little as 6 weeks from now. It was a rough week for her.
I could care less about production. I just want things to go right for those in need. What a horrible situation.
Yeah, mine was suppose to arrive in 30 days or so but I've kinda reserved myself to the idea that my truck may not arrive at the time I'd have hoped. Luckily I haven't sold the old one yet.
My Brother lives in Japan. Luckily he's pretty far away from the situation and the wind is blowing out to sea....
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