So much for “just in time”
The “just in time” model is supposed to make supply chains more efficient by minimizing warehousing and storage. The current Trump tariffs are doing violence to the JIT model:
“Trade experts say that companies have stockpiled enough inventory in recent months that, if the White House reverses course soon and significantly drops tariffs on China, much of the pain for the economy and consumers can be avoided. Data from the Institute for Supply Management show that US inventories are at their highest level in more than two years.
“Gabriel Wildau, a managing director at Teneo, who advises companies on doing business with China, said that the Chinese goods that US retailers had stockpiled in the first three months of the year would give stores some time before they would need to raise prices. But if the situation is not changed quickly, American consumers will feel the impact of trade changes unfold over the next three to six months, he said.
“We’re going to have higher prices and, in some cases, empty shelves,” he said.”
Fewer goods, more expensive. MAGA.
Trump tariffs about to hit US consumers
“Trade experts say that companies have stockpiled enough inventory in recent months that, if the White House reverses course soon and significantly drops tariffs on China, much of the pain for the economy and consumers can be avoided. Data from the Institute for Supply Management show that US inventories are at their highest level in more than two years.
“Gabriel Wildau, a managing director at Teneo, who advises companies on doing business with China, said that the Chinese goods that US retailers had stockpiled in the first three months of the year would give stores some time before they would need to raise prices. But if the situation is not changed quickly, American consumers will feel the impact of trade changes unfold over the next three to six months, he said.
“We’re going to have higher prices and, in some cases, empty shelves,” he said.”
Fewer goods, more expensive. MAGA.
Trump tariffs about to hit US consumers
Joel:
My experiences with my China Supply Base was, I own the inventory once it hits the dock. It is then I pay or it or once it is on board. Add to that: 3 weeks minimum on the ocean, a week in customs and another week of trucking or rail. There is another 5-6 weeks of inventory backing up the cheap stuff on hand.
Will the tariffs last that long? Someone is going to blink. Nice post,