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+--- Thread: Any supply chain wonks out there? Explain it to me like I’m six years old, 2 months + in, why haven’t supply chains made (/showthread.php?tid=240426)
Re: Any supply chain wonks out there? Explain it to me like I’m six years old, 2 months + in, why haven’t supply chains - Michael - 04-23-2020
Ombligo wrote:
Additionally with states and federal leaders making noise about reopening everything soon is not helping. Manufacturers are not going to change production lines or invest in expansion only to see demand falls upon reopening in a few weeks.
Our college has a supply-chain degree within the business school. They've been posting about shortages and have made a very similar point. It's very expensive for a particular supplier to set up and run a supply chain. With the assumption that this is a short-term problem many are choosing to simply stuff trucks fuller of particular items but not run more trucks of those items. I presume that cascades down from manufacturers not changing production lines for a short-term problem.
Now, if it goes on for a long time, who knows...
Re: Any supply chain wonks out there? Explain it to me like I’m six years old, 2 months + in, why haven’t supply chains - Bernie - 04-23-2020
Grocery stores buy from different wholesalers that the restraunts buy from.
The manufactures that supply both, package it differently.
The grocery store gets Hamburgers packaged in boxes of 4 or 6 that are brightly colored. The restaurants get Hamburgers that are in white cardboard boxes of say 36.
The grocery stores and the wholesalers they buy from are seeing their sales double because people are eating at home. The restaurants and their wholesalers are full of supplies and no customers.
or
People in suits buy super tankers of oil for one price and hope that when they arrive they can sell it for a profit. But when the tanker arrives not only does no one need it, but there is no place to off load it.
So the man in the suit is now scratching his ...... and paying a tanker to sit there until he finds someone to buy it.
Every day that passes costs him a nickel out of the dollar he hoped to make.
So the man in the suit decides to sell his dollar of oil for 95 cents rather than have to pay 5 or 10 cents to store it in hopes to get a dollar later.
Re: Any supply chain wonks out there? Explain it to me like I’m six years old, 2 months + in, why haven’t supply chains - Ombligo - 04-23-2020
Even more messed up are produce and fruit growers. Tomatoes are a major crop where I grew up, 1000's & 1000's of acres. The majority are sold to restaurants - who aren't buying now. Farmers are just letting it rot in the field.
We've already had a local commercial blueberry farm close up shop - the entire season is in March & April, they lost it and can't come back. If it had been a flood or tornado they had insurance, but lack of buyers is not insurable.
Dairy's are pouring milk down the drain because schools aren't buying.
Retail sales are generally the smallest segment of the market, just the most visible to the general public.
Re: Any supply chain wonks out there? Explain it to me like I’m six years old, 2 months + in, why haven’t supply chains - Bernie - 04-23-2020
Ombligo wrote:
Even more messed up are produce and fruit growers. Tomatoes are a major crop where I grew up, 1000's & 1000's of acres. The majority are sold to restaurants - who aren't buying now. Farmers are just letting it rot in the field.
We've already had a local commercial blueberry farm close up shop - the entire season is in March & April, they lost it and can't come back. If it had been a flood or tornado they had insurance, but lack of buyers is not insurable.
Dairy's are pouring milk down the drain because schools aren't buying.
Retail sales are generally the smallest segment of the market, just the most visible to the general public.
Truly Heartbreaking!
Re: Any supply chain wonks out there? Explain it to me like I’m six years old, 2 months + in, why haven’t supply chains - Fritz - 04-23-2020
long haul truckers who are generally at health risk anyway, have one more thing to be concerned about.
~38% of all truckers have no health insurance.
bottlers, canning facilities, and other "non-essential" workers.
“It’s like suddenly they realized we are here contributing,” said Ms. Silva, a 43-year-old immigrant from Mexico who has been working in the clementine groves south of Bakersfield, Calif.
and what Sarcany and others point to.
Re: Any supply chain wonks out there? Explain it to me like I’m six years old, 2 months + in, why haven’t supply chains - SteveG - 04-23-2020
The National Chicken Council (NCC), which represents about 95 percent of the chicken produced in the US, including Tyson, Perdue, Sanderson Farms, and Pilgrim’s, reported that sales are up for retail but not enough to offset food service losses, which is roughly 50 percent of its market.
Re: Any supply chain wonks out there? Explain it to me like I’m six years old, 2 months + in, why haven’t supply chains - Fritz - 04-23-2020
Like that. I've only been able to find chicken every 2 weeks at best.
But I live in a very populous area. My bad.
Re: Any supply chain wonks out there? Explain it to me like I’m six years old, 2 months + in, why haven’t supply chains - pRICE cUBE - 04-23-2020
Fritz wrote:
Like that. I've only been able to find chicken every 2 weeks at best.
But I live in a very populous area. My bad.
With processing plants shutting down due to ill employees, fresh meat could become more scarce. Might not be a bad idea to start buying some canned proteins.
Re: Any supply chain wonks out there? Explain it to me like I’m six years old, 2 months + in, why haven’t supply chains - Fritz - 04-23-2020
pRICE cUBE wrote:
Might not be a bad idea to start buying some canned proteins.
chef boy-r-d
Re: Any supply chain wonks out there? Explain it to me like I’m six years old, 2 months + in, why haven’t supply chains - NewtonMP2100 - 04-23-2020
....the problem is canned food in general can also be hard to find......so stuff like canned tuna, spam, vienna sausage, corned beef, etc.....is already hard to find......
.....even canned beans [ protein ] can be hard to find......