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Is It Time to Rethink Globalized Supply Chains?

sloanreview.mit.edu

241–250 of 322 posts

Re: Is It Time to Rethink Globalized Supply Chains?

#241
In light of the recent evacuation order issued by MIT administration over concerns about the spread of COVID-19, students should rethink whether or not the campus experience is really worth the exorbitant price that schools like MIT are charging for it.

Perhaps it's time now for the "globalized supply chain" of higher education to go online.

A recent hacker news article talked about the precipitous decline in applications for on-campus business school degrees. If that trend continues, maybe future MBA's can lead the way on this one.

Re: Is It Time to Rethink Globalized Supply Chains?

#242
post #122

Earlier quoted context omitted.

Tim Cook is was hailed as a supply chain guru. But even he likely didn’t weigh pandemics high up on the concern list enough to have supply chain redundancy. For what appears to be a 1/100 year event I’m not sure it would make sense for most companies anyway.

It may be best to no longer think about pandemics as a 1/100 year event.

Well, that's the sort of mindset people had after 9/11 or the financial crisis. Pretty much a decade (at least) of anticipating the next similar thing to happen. Did you think after Chelyabinsk that we should concentrate everything on meteor prevention? What about the rise of white supremacy in the US after the 2016 election? Hindsight tends to be myopic, kind of the opposite of 20/20. But then again, it is 2020, isn't it?

Re: Is It Time to Rethink Globalized Supply Chains?

#244
post #105

Earlier quoted context omitted.

Is it possible some legislation requiring resilience and local-sourcing could be possible in this climate? - esp. given the political antipathy to China these days.

I sure get the feel that it would be, but I hope we get moving on that ASAP before this is over, because I suspect minds have only been temporarily opened on this matter. Before too long I suspect our old heuristics will reassert their dominance over logic on topics that are in any way associated with the identity of the person. I am going to bookmark this thread in anticipation of this phenomenon. "Nobody could have…

This is arguing over whether the iceberg sank the Titanic or the decision to remove bulkheads to make room for the grand ballroom.

It is of course both. Global supply chains and JIT delivery have made us more fragile. But China reacted well - locked down a region of 60 M people - then sent in the resources we of 1.5 BN to stop the spread to the rest of the country. Now they are basically hanging on till a vacccine.

USA pandemic teams probably had similar plans - shutdown California for example - in other words steering away from the worst of the icebergs.

Is China's strategy "best"? Hard call to make - especially now. But it beats many many alternatives.

Re: Is It Time to Rethink Globalized Supply Chains?

#247
I think the unfortunate fallout from this is that China now has confirmation that they are in a dominant position world wide and likely will start to exploit that fact. This isn't a statement on the country, any country in that position would do exactly the same thing and had done many times in the past.

Re: Is It Time to Rethink Globalized Supply Chains?

#248
post #68

Earlier quoted context omitted.

There are reasons why US prefers to bail Boeing. US is always concerned about espionage and dependencies on other countries with respect to national interest. An example would be the whole Huawei+5G debacle. What if Boeing goes bankrupt and the only reliable plane makers are PRC companies (usually state-backed, even if it's not explicit)?

Boeing needs to be broken up. Parts critical to national security can be federalized. The rest can be restructured to restore competition to the market and eliminate the 'single point of failure'. Boeing's efforts to consolidate the entire US aerospace industry into one company have hurt our society. https://en.wikipedia.org/wiki/Category:Boeing_mergers_and_ac...

And they are still considering a 4.2 billion acquisition even as they ask for federal loans.

https://www.nytimes.com/reuters/2020/03/18/business/18reuter...

Re: Is It Time to Rethink Globalized Supply Chains?

#249
post #64

I feel like the problem is less that supply chains are globalized, and more that they aren't redundant. By that I mean, there's too much reliance on China as the primary producer/exporter for countless industries and products. Having just one nation account for such a large share of manufacturing introduces single points of failure. It would be wise to have multiple sources for any given good, especially if it's esse…

In my experience, it's not that companies are choosing any one strategy over another. It's more that companies have no idea what their supply chain actually looks like. Only that the widgets show up at their loading dock every week, and that the shipments have always been reliable in the past, so that there's no reason to look any further. There are often strong disincentives, as well. Nike, for example, got themselv…

My dad used to work for a big tech OEM and retired a few years back. He had years of supply chain flows, contacts, locations, and more for his old company in notes, his head, and Visio and was hired through layoffs for that knowledge. I think in like 2006 he was picked up by a manager who had heard him speak up in a meeting years before to explain a step in a chain and knew he knew what the company was able to do.

He could jump into the flow of parts and information for a specific printer model from 10 years ago. He knew the reasons for each steps like import tax avoidance, cost/benefit analysis of using one vendor/shipper/etc, or even that they used to have a specific engineer at that one factory who was amazing at QA and tolerance checking or something like that. When teams were behind due to supply chain issues, he would jump in to analyze their process. Sometimes that meant combining it with ongoing flows like "This factory here makes a part like that for product X, I'll get you a sample so you can adapt it into your product to rework."

He had immense company value and history committed to memory that he tried to pass before leaving as teams moved to India or China. But I doubt anyone at a decision making level was aware.

Re: Is It Time to Rethink Globalized Supply Chains?

#250
I think the unfortunate fallout from this is that China now has confirmation that they are in a dominant position world wide and likely will start to exploit that fact. This isn't a statement on the country, as any country in that position would do the ame and has done so in the past many times over.
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