Soren Skou, the CEO of Maersk, the world’s largest container ship merchant, which is regarded as the global trade wind, said that the Suez Canal will accelerate the transformation of the global supply chain due to the ship stranding and blockage of the Suez Canal. Companies will shift from a "just-in-time" model to a "just-in-case" model to substantially increase inventory levels.
He said that the epidemic has prompted many companies to adjust their supply chains to not be restricted to a single supplier, and to reassess their reliance on the "just-in-time management" model; under this model, components are only shipped to the factory when they are needed. At present, companies are turning to a "just in case" model to substantially increase inventory levels to avoid product shortages when the supply chain is disrupted.
The epidemic lockdown measures have prevented companies from obtaining specific parts and components, causing chaos in the "just-in-time delivery" supply chain, and prompting companies to review the supply system. He said: "Just in time delivery mode is indeed beneficial when it works smoothly, but once it fails, it will cause loss of sales. The cost saved by timely delivery is not enough to make up for the negative impact of loss of sales." Many companies are giving up relying on a single supplier. Practice, "Our customers stated that there must be multiple suppliers to ensure that there is no business shutdown due to a problem with a small sub-supplier."
He said that the epidemic has prompted many companies to adjust their supply chains to not be restricted to a single supplier, and to reassess their reliance on the "just-in-time management" model; under this model, components are only shipped to the factory when they are needed. At present, companies are turning to a "just in case" model to substantially increase inventory levels to avoid product shortages when the supply chain is disrupted.
The epidemic lockdown measures have prevented companies from obtaining specific parts and components, causing chaos in the "just-in-time delivery" supply chain, and prompting companies to review the supply system. He said: "Just in time delivery mode is indeed beneficial when it works smoothly, but once it fails, it will cause loss of sales. The cost saved by timely delivery is not enough to make up for the negative impact of loss of sales." Many companies are giving up relying on a single supplier. Practice, "Our customers stated that there must be multiple suppliers to ensure that there is no business shutdown due to a problem with a small sub-supplier."
