I'm in supply chain dealing with the fukkery AMA; Update: Chip shortage until at least 2022

[Spatial Paradox]

One of the big underlying causes of all of the supply chain and logistics problems is that companies and industries have spent decades taking a Just-In-Time approach to manufacturing and how they manage their inventories. The basic idea is to not manufacture or stock more inventory than you can sell within some time frame.

That kind of approach is great for enabling flexibility to switch gears when necessary, and of course reducing costs. So companies scaled back production when Covid struck last year. But now that demand has been rising again and a lot of industries need time to ramp up production to meet demand (e.g. the semiconductor industry), you get the current supply chain chaos.

 

[The M.I.C.]

The seafood distribution operation I’m invested in Charleston is struggling at the moment. Badly.

Our operating costs are getting ridiculous and it’s pressure coming from higher wages being paid and mostly, getting product from overseas to the customers. Bluefin tuna? Tiger Prawns? Lobsters? You want that? Be prepared to pay out of the ASS for it. Lobster right now is going for fukking 38 dollars a lb at market, that’s unheard of..don’t even get me started in regards to Tuna. Food prices haven’t even reached their peak and with folks rushing back into restaurants, it’s going to be interesting to see how much of these costs owners are going to absorb before they pass the costs off to the customer.

 

[The M.I.C.]

One of the big underlying causes of all of the supply chain and logistics problems is that companies and industries have spent decades taking a Just-In-Time approach to manufacturing and how they manage their inventories. The basic idea is to not manufacture or stock more inventory than you can sell within some time frame.

That kind of approach is great for enabling flexibility to switch gears when necessary, and of course reducing costs. So companies scaled back production when Covid struck last year. But now that demand has been rising again and a lot of industries need time to ramp up production to meet demand (e.g. the semiconductor industry), you get the current supply chain chaos.

Most of the auto industry fukked themselves over by cancelling a majority of their orders for semiconductors last year when COVID struck and what happened is that Verizon, T-Mobile, AT&T and other telecoms put in MASSIVE orders for chips to push ahead with the complete rollout of the 5G network here and overseas..there was no flexibility in regards to this because as far as the US Government is concerned the need for blanket coverage for 5G across the country is considered a high priority issue that needs to be resolved ASAP.

 

[Hoshi_Toshi]

Pallets!?

shyt it’s worse than I though.

 

[HabitualChiller]

Are you a Procurement Clerk? I'm interested on getting into the Supply chain area once I separate from the military.

 

[DrBanneker]

One of the big underlying causes of all of the supply chain and logistics problems is that companies and industries have spent decades taking a Just-In-Time approach to manufacturing and how they manage their inventories. The basic idea is to not manufacture or stock more inventory than you can sell within some time frame.

That kind of approach is great for enabling flexibility to switch gears when necessary, and of course reducing costs. So companies scaled back production when Covid struck last year. But now that demand has been rising again and a lot of industries need time to ramp up production to meet demand (e.g. the semiconductor industry), you get the current supply chain chaos.

Yeah we actually wanted to put in more safety stock inventory last year but got vetoed by management who didn't want it on their books. That decision isn't going over well now...

 

[DrBanneker]

The seafood distribution operation I’m invested in Charleston is struggling at the moment. Badly.

Our operating costs are getting ridiculous and it’s pressure coming from higher wages being paid and mostly, getting product from overseas to the customers. Bluefin tuna? Tiger Prawns? Lobsters? You want that? Be prepared to pay out of the ASS for it. Lobster right now is going for fukking 38 dollars a lb at market, that’s unheard of..don’t even get me started in regards to Tuna. Food prices haven’t even reached their peak and with folks rushing back into restaurants, it’s going to be interesting to see how much of these costs owners are going to absorb before they pass the costs off to the customer.

All seafood is basically going to be "market price" almost. Not just the good stuff.

 

[The M.I.C.]

Yeah we actually wanted to put in more safety stock inventory last year but got vetoed by management who didn't want it on their books. That decision isn't going over well now...

A lot of folks did that and a lot of folks don’t have their jobs anymore either.

 

[DrBanneker]

blanket coverage for 5G across the country is considered a high priority issue that needs to be resolved ASAP.

Why? I know why they wanted Huawei out but what is so urgently needing 5G?

 

[DrBanneker]

Are you a Procurement Clerk? I'm interested on getting into the Supply chain area once I separate from the military.

Category/Commodity Manager - more supplier development, management, contracts, etc. Procurement clerks are mostly purchase orders or master planning.

 

[DrBanneker]

Are you a Procurement Clerk? I'm interested on getting into the Supply chain area once I separate from the military.

Start studying for your CPIM now and get that before you get out. If the books are too expensive use libraries to get it.

 

[The M.I.C.]

Yeah we actually wanted to put in more safety stock inventory last year but got vetoed by management who didn't want it on their books. That decision isn't going over well now...

Yeah.

Like I said, it’s interesting because the competition is moving the same way raising prices. Restaurants trying to hop around to find lower prices and seeing that their isn’t a lower price.. we’re ironically enough the cheapest since we have operations in New England where we have direct access to a lot of product but folks should be ready for prices to go up at these restaurants.

 

[brickfare]

Any of y’all in transportation? Chassis shortages in my city and in places like Chicago got us all like

Add in the i-40 bridge being down and the backlog of containers on the west coast, shyt sucks

 

[Spatial Paradox]

Yeah we actually wanted to put in more safety stock inventory last year but got vetoed by management who didn't want it on their books. That decision isn't going over well now...

I bet a lot of companies/industries are having those same uncomfortable realizations around their inventories. There’s a ton of money basically being left on the table because of those decisions

 

[HabitualChiller]

Start studying for your CPIM now and get that before you get out. If the books are too expensive use libraries to get it.

Oh, it's free.

I was going to get that, my CLA, CSCP, PMP, and CPSM. The Sigma Six Black Belt was #1 on my list though.

Category/Commodity Manager - more supplier development, management, contracts, etc. Procurement clerks are mostly purchase orders or master planning.

Ah. That's one job that I'm looking at.