Thursday, March 30, 2023
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Lean, ‘Just-in-Time’ Management Didn’t Cause the Supply Chain Crisis

The JIT method of management essentially has you have the most minimal amount of inventory at any given time. It sounds like something that could cause a supply chain crisis. Another methodology that is also being part to blame is the Lean manufacturing. The supply chain was already showing weak signs and COVID was the straw that broke the camels back. China was another reason why the supply chain crumbled as we rely on China for a lot of cheap labor.

Key Takeaways:

  • Many people think that the JIT was one of the reasons for the supply chain crisis
  • They believed it was responsible because you essentially keep the lowest amount of stock possible.
  • This is has been going on for longer than the crisis and it was fine before.

“Certainly, it’s true that many manufacturers developed highly efficient supply chains that, so long as they ran smoothly, enabled them to keep very low inventories.”

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