![]() ![]() It seems to work quite well, until it doesn’t. Like the financial system before the 2008 crash, this kind of economic order hides its fragility. Our hyper-efficient globalized supply chain, once romanticized by men like Tom Friedman in The World Is Flat, is the problem. The consolidation of power into the hands of private equity financiers and monopolists over the last four decades has left us uniquely unprepared to manage a supply shock. But what we’re experiencing is also the net result of decades of policy choices starting in the 1970s that emphasized consumer sovereignty over citizenship. But some point to government spending and money printing at the Fed as worsening the problem, while others suggest it is temporary and will resolve on its own.īoth arguments have merit. As people go on vacation less and do outdoor sports more, the price of, say, airline tickets should drop, and the price of bicycles will go up. Everyone agrees that the Covid pandemic and chaotic changes in consumption habits have caused inevitable short-term price hikes and shortages. ![]() There are multiple arguments about why the problem is as bad as it is. For instance, the inability to fix trucks means that truck drivers can’t haul boxes of goods, which might actually contain the parts needed to fix the trucks, and so forth. The problem seems to be getting worse, as the shortages pile on top of each other like a snake eating its tail. ![]() We’d love to chat.Imagine that, no french fries in America. To learn how FoodBusiness ERP can help your company overcome food industry supply chain challenges, reach out to us. Warehouse management with barcode printing.Shelf-life management with expiration and use-by dates controls. ![]()
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