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Why There are Now So Many Shortages (It's Not COVID)

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  • Published on May 31, 2021
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    Select footage courtesy the AP Archive
    References
    [1] www.joc.com/port-news/us-port...
    [2] www.freightwaves.com/news/new...
    [3] www.wsj.com/articles/americas...
    [4] www.freightwaves.com/news/no-...
    [5] www.hillebrand.com/media/publ...
    [6] www.vox.com/22410713/lumber-p...
    [7] www.cnbc.com/2021/04/30/a-maj...
    [8] www.wsj.com/articles/ketchup-...
    [9] www.independent.co.uk/extras/...
    [10] people.brunel.ac.uk/~mastjjb/j...
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Comments • 0

  • CHEP
    CHEP 11 months ago +1418

    If automotive would have just kept their future orders on the books, they would have been fine. But they panicked and cancelled them so semiconductor companies slowed down the lines and built far less. If auto companies would have just reduced orders, (mild adjustment) they would be in better shape. So it really wasn’t Just In Time as much as they panicked and broke the system.

    • Daneel Olivaw
      Daneel Olivaw Day ago

      @Bruce Grubb So according to you, the reason is Covid, directly, not indirectly, as they claimed, I mean because of automotive industry cancelling orders... ;)
      Anyway, According to your explanation, everything should have increased in price, CPus, since those are in computers too, memories, etc. And also, not all graphic cards got expensive Only some.
      But I suppose you did not read all my previous comments so I will repeat. Two decades I bought this bullshit. Some explosion at a resin factory, some flooding to other, disasters happens all the time. And sure some times may provoke disruptions. But in time I started to see that some things does not correlate. And I realized that these are tactics to scare people to buy over the real price. You know, buy know, later will get even more expensive. So, decades ago I fell for this. But in last decade I was not fooled anymore. I just waited, or chose a different solution.
      The problem is a littler more complex, there is no room to explain it all here, but the purpose is simple. To squeeze as much money possible from customer. And the methodology is vast. From simply lying, at cheap products, like powerbanks for example, where you gat a quarter or less of the capacity advertised, to more complex things like spreading rumors like this. If you are able to get the big picture, you keep your cool and you avoid the trap. If you act like the majority, than you overpay.

    • Bruce Grubb
      Bruce Grubb 2 days ago

      @Daneel Olivaw Basic supply and demand explains everything. As you said there is a delay and what graphic chips were made were based on the old data. Trapped at home people turned to the one thing they could do at home other than watch TV - computers which logically included graphic cards.

    • Chong Weed
      Chong Weed Month ago

      @Anne Hedonia it's to stop people like me from thriving. Not just me but lots of people here. Evil is overwhelming here

    • S Grabher
      S Grabher Month ago

      of course you'd be watching things like this. big fan ^^

  • Brian McConkey
    Brian McConkey 5 months ago +7

    "A ruthless pursuit of short term profit, at the expense of long term gain is the cause". A truer statement has never been uttered!

  • Chris
    Chris 6 months ago +2

    13:16 Think anyone will notice our calendar animation has a made up month in it? 😆

  • Eric Easton
    Eric Easton 6 months ago +2

    6:01 Was not expecting to see my hometown in this video. I'm so glad we've all cleaned up so much debris in the past year, it almost looks halfway normal now.

  • Tim
    Tim 4 months ago +1

    Janurary :D

  • Wes H
    Wes H 11 months ago +688

    "They ignored huge swaths of The Toyota Way, and created a system that's less effective and less resilient, but can impress shareholders through short-term savings."
    Sums it up in one sentence. Really great video!

    • Otto Von Bismarck
      Otto Von Bismarck 6 months ago +2

      sounds exactly like boeing strategy, seeking only short term profit, and ending with the 737max failures and the 787 mishaps

    • San Bruno
      San Bruno 10 months ago

      PEACE
      BONANZA
      ABUNDANCE
      FREE THINKING

    • Bill Anderson
      Bill Anderson 11 months ago +5

      @varana312 Agreed, this is highly dependent on where you live and overblown like crazy. The reality is that in MOST of America it is perfectly safe for kids to go to school on their own. I did, so did my kids - even in a large city for one of them.
      A big part of why we don't realize that is this focus on a national level. Something like 2/3rds of murders occur in just 5-6 counties in the U.S.. To extrapolate that to the remaining 3100 or so is absurd, but that is what happens. I'm not going to call any of them out because people will try to derail it by trying to collectivist those counties. What matters for this topic is that you simply can not rationally extrapolate those 5 counties to the other 3100+. But lets get back to the dreaded kidnapping scenario posited above.
      We see the same patterns for things like kidnap. Stranger kidnap, what is referenced here, is incredibly rare and a tiny fraction of kidnappings. By tiny fraction I mean one percent OF one percent of all missing/kidnapped kids were taken by complete strangers - yes one one-hundredth of one percent. Even non-stranger abductions are rare and a tiny portion of missing kid cases. Of all missing child reports, 90% are miscommunication, getting lost, being late, runaways, etc.. Only 9% are family/friend abduction and almost always as part of a custody dispute.
      Annually in the U.S. only around 100 kids are abducted by a "stranger" - out of over seventy million under the age of 18. Technically for the data a stranger includes someone whom the child has known for less than six months, or more than six months but only see once a month or so, or someone the kid would recognize by face, but not recall the name. Out of the roughly 100 about 60-65% are complete strangers.
      This helps make the next stat make more sense.
      Of this type of abduction, 32% were taken from/at the kidnapper's home, 32% from the child's home, and the rest were somewhere else.
      Compare that to the UK where they have almost 300 per year abducted by strangers - some 40% or so of UK child abductions are stranger abductions. I don't have location data in my memory or handy, nor do I have whether they count "acquaintance" similarly, thus the comparison stops there. But consider this: UK has less total people than the US has children but 2-3 times as many stranger abductions - even more if you go on total strangers.
      Now Japan ... oi what a mess when it comes to child abduction. They do have a big problem there, just not the stranger abduction kind. Their parental rights system causes massive problems that kind of makes them a parental abductor's place to go. As is the case in the U.S. stranger abductions are a tiny fraction, and custody battles dominate (joint custody doesn't exist there, parental abduction isn't really considered a crime at first, etc.).
      So despite cattysplat's nihilism, no there isn't someone lurking around every corner to snatch our kids - a least not here in America. It is correct that reality speaks for itself, but what the press tells, or sells, you is often not reality. Nor is what cattysplat selling reality.

    • varana312
      varana312 11 months ago +6

      @cattysplat Even in Western societies, children can go to school by themselves without getting kidnapped. And when they're brought by their parents, it's usually because of road safety, or weather, or public transport availability. Not for fear of crime.

    • sven's channel
      sven's channel 11 months ago

      @cattysplat my view of the state follows between how Ayn Rand and Murray Rothbard used to see it.
      I'm confient that, with enough time, humans won't succumb to states in the long future. It just feels natural.

  • Diego Dolp
    Diego Dolp 5 months ago +1

    Janurary.

  • Wayne Donecz
    Wayne Donecz 7 months ago +1

    So it WAS the “Lookie Lou” on the hi way slowing down to get a view of the accident that caused the mile long backup!

  • Tom
    Tom 7 months ago +1

    I don’t understand why they don’t use the ports around the Houston area more. Dallas Texas has so much warehouse capacity. Just don’t get it.

    • Tom
      Tom 7 months ago

      Maybe I should run for Governor of Texas. I would constantly be looking at this kind of stuff, and promoting Texas.

    • Tom
      Tom 7 months ago

      It’s about 15000 miles from Hong Kong to Houston the long way around. Way less if you go through the Panama Canal

  • Kristian Robertsen
    Kristian Robertsen 3 months ago +1

    Jesus Christ the way this guy drags out his words then speeds up the recording is infuriating.
    It's not a cool gimmick dude, it's just incredibly annoying.

  • Saim S.
    Saim S. Year ago +3285

    I was waiting for my favourite logistical specialist to tell me what’s going on in the logistical world.

    • Pavel Shiklomanov
      Pavel Shiklomanov 3 months ago

      @Tyler Hendrix r

    • Xandit
      Xandit 5 months ago

      @Jacc Just-A-Concerned-Citizen You’re simply wrong, and that’s textbook hun.

    • j7
      j7 5 months ago

      @TheTechiemoses the root of all evil is within us humans ourselves

    • XyphonXero
      XyphonXero 11 months ago +3

      @TheTechiemoses There were a lot of people in my area that just took up local jobs with Walmart, Lowe's or Home Depot. The latter two even kicked up a $2/per hour increase to keep up with sales plus multiple Covid relief bonuses were given out at this time. Lumber hit a dry period around mid-summer last year and currently they are nowhere near that level as most of them have more supplies than they can manage right now in this department. Drive by one of the latter and see if you notice that they are flushed with supply yet the demand never changed, only the cost has. It is not the store and it is not the distributor.
      You will own nothing, you will rent everything and you will be happy.

  • john vazakas
    john vazakas 7 months ago +1

    The liberal leadership is what caused the shortages. That California business was facing shortages due to liberal laws in the state

  • RabidPrairieDog
    RabidPrairieDog 8 months ago +38

    I can attest to the shortage of truck drivers. This has been a problem for over 5 years now. My friend's family runs a trucking business. The business is one of the most poorly-run businesses I have ever seen. They were on the brink of going out of business when the truck driver shortage happened. Now, even large companies such as Target and Gap are willing to put up with their tardiness and crap that would shut down an adequately-run business just to get their products shipped. This business once "forgot" a shipment for Forever 21 and missed the sale for Black Friday...
    Also, Walmart has been ramping up hiring truck drivers for awhile now. They have these semi-annual hiring sessions in the large parking lot in my city where they test you right then and there. Starting salary is over $90k.

    • Noobalator
      Noobalator 2 months ago

      They still hold pretty strong on their years required, but they're one of the best trucking companies out there.

  • Kyle Morgese
    Kyle Morgese 7 months ago +336

    17:26 - 17:33 is my favorite takeaway from this video. SO MANY people are only interested in short term gains, NEVER playing the long game, thats a life lesson. always play the long game. invest in yourself and be consistent so that you can adapt for changes when they inevitably happen.

    • Shinkajo
      Shinkajo Month ago

      But short game obviously works. The real question is how can we use the long game to fuck over the greedy short gamers.

    • Edgar Gomez
      Edgar Gomez 6 months ago

      @Kyle Morgese the main reason shareholders aren’t willing to play the long game is for one reason, limited life. Unfortunately, that’s an unknown variable for all of us. The thinking is “I need to make as much money as I can so that I can enjoy it before I leave this planet”.

    • pluspiping
      pluspiping 6 months ago +3

      @FutbolPro101 Yeah that's part of the problem

    • FutbolPro101
      FutbolPro101 6 months ago +2

      Every corporation has quarterly profits statement.
      If you don't show profit, you are fired.

    • pluspiping
      pluspiping 6 months ago +2

      In that that case, it's really too bad that corporations are required to chase short-term gains, lest their investors not get richer, faster, constantly. If they feel like they could be making more money faster - short-term or not - they can simply demand things be changed.
      The way these companies run is beyond messed-up.

  • Tobias Reaper
    Tobias Reaper 8 months ago +236

    I find it interesting how larger companies that desperately needed money in the beginning of the pandemic, when everything was closed, have been doing relatively ok when their businesses reopened, despite reduced operating hours and services. Really tells you just how big some of their profit margins were.

    • ᅚᅚ ᅚᅚᅚᅚ ᅚᅚ
      ᅚᅚ ᅚᅚᅚᅚ ᅚᅚ 2 months ago +5

      I worked for bestbuy for 4 years. They profited more in 2020 than previous years, halved the workforce. Made them work all hours and then laid off half of them at the end of the year offering part time (which at the time we had 2 part timers and they were getting one shift a week)

    • Shawn R
      Shawn R 4 months ago +2

      @Slender Man 186 and Amazon made record problems.

    • Slender Man 186
      Slender Man 186 5 months ago +18

      They never “desperately needed money,” That was the narrative the media portrayed, but Microsoft grew by 1/3, Super stores like Walmart grew because their smaller competitors weren’t deemed “essential” enough to stay open, and speaking of which small businesses got fucked over for absolutely no reason.

    • Jared Rice
      Jared Rice 6 months ago +11

      Retail is one thing, whoselase and distribution is another. I'm only making an average of 5% in the electrical trade and still constantly have to hear "home depot has it for x!" However, thanks to this bs, home depot doesnt actually have it

  • james caulfield
    james caulfield Year ago +726

    I knew from your title of the video that "Just in Time" manufacturing was going to be one of the causes you stated. I spent 26 years going between jobs in the air freight, ltl trucking, warehousing, and logistics industries and I saw "just in time" in action and just how customers got screwed up because they relied on it too much. I can't tell you the amount of times (it would definitely be over a hundred) I heard "we got to get it there because they're going to have to shut down a line if we don't". It's no wonder that during the covid crisis, that the problem would be exacerbated !

    • macsound
      macsound 4 months ago

      "Just in time" really means "too little too late." I worked for a home goods company who essentially blamed the entire workforce when their "just enough" prediction was wrong, leading to massive backorders and ultimately negative cashflow. If they didn't attempt to game the system so hard and just manufacture at a slow and steady pace, they 1. wouldn't need a bunch of analysts who are essentially gambling and 2. they'd never be "out" for months, items would just come in as they're made.

    • Shaun McIsaac
      Shaun McIsaac 4 months ago

      @Manikarnika Tambe The failures just becomes tax write offs for the Venture Fund Bros, so it's all good as far as mgmt is concerned.

    • Shaun McIsaac
      Shaun McIsaac 4 months ago

      @D C There is a local co offering a signing bonus well into five figures to drive for them and it's not even long haul.

    • Noel Burke
      Noel Burke 11 months ago

      @akshay kumar there's a lot of hyprocondriaks out there and loads off Government and civil servants that relish the lockdowns doesn't matter to them they still get paid

    • TheGooglySmoog
      TheGooglySmoog 11 months ago +1

      @Jordon Carlson There is a also a concept of Single Points of Failure. It has to work in conjunction with JIT. You have to be absolutely ready for risk and dealing with the worst case scenario.

  • Way K
    Way K 6 months ago +176

    Seriously, after this COVID disruption to supply chain issues (ie. lack of semiconductor chips), every country should have their own manufacturing facility to avoid supply disruptions. Canada should have their own manufacturing facility. Sure it may be more expensive (due to mostly labour cost), but it should ensure constant supply and less price fluctuations. The world cannot just rely on China and India to manufacture critical materials like medical supplies/medications and semiconductors.

    • VoiceOvaGuy
      VoiceOvaGuy 4 months ago +1

      As long as the people at the top making the decisions keep making more money nothing will change. They either need to have their incentive removed, or be given a new incentive to not do this, like life threats.

    • XGD5layer
      XGD5layer 4 months ago

      While having a semiconductor factory in every country would be nice, there is a problem. A single new sufficiently advanced semiconductor factory costs a billion dollars to build if you're lucky.

    • Sean Servo
      Sean Servo 4 months ago

      @Peter P are you kidding? Investing in real estate is never a bad idea, land is finite. Labor is easy when it's not asking for a pension for unskilled workers. And healthcare is a tax writeoff, who doesn't love those. I don't know where you get your info, but they're lying to you, hon.

    • Sean Servo
      Sean Servo 4 months ago

      TAXATION still awaits anyone wanting to build a business here. MINIMUM WAGE still awaits anyone wanting to build a successful business here. To stand on an assembly line doing unskilled labor.

  • Charnotaurus
    Charnotaurus 4 months ago +8

    The boba tea thing is really funny actually, because in Australia a "make at home" boba tea company called "bubble tea club" popped up during covid as the two owners were layed off DUE to covid and said "screw it, why not?" and now they ship internationally lol.

  • Pia
    Pia 8 months ago +116

    The Right to Repair has got to be more important than ever. My neighbor had a nice new range put in her house. Within a few years, she ended up having to have a circuit board replaced 2x before giving up the third time and just buying a new stove. It probably would have helped if she could have replace the board herself. And now there are extreme home appliance shortages and waits.

    • Domehammer
      Domehammer 4 months ago

      Never ever buy a brand new model of and appliance. You always buy a older model because the newer model hasn't been around long enough for flaws to be found.

    • Alex C
      Alex C 5 months ago

      For what it's worth, it is difficult to repair a circuit board like that, but it is probably possible for a DIYer to make their own circuit board.
      If it is a 15¢ capacitor like Ed Siler guesses, that's totally DIY-repairable. The tricky part is when it's one of the chips.

    • Dank Dark
      Dank Dark 6 months ago +10

      @py Head Right to repair is not exclusive to farm equipment anymore although that is where it started and is most needed.

    • Ms Maddie
      Ms Maddie 7 months ago +4

      Things are no longer built to last or to be repaired. They just want you to buy more.

    • Viking Goddess
      Viking Goddess 7 months ago +2

      My m-i-l had her stove go out last year. The repairman said he couldn't even fix it because they weren't even allowed to order the part anymore. She had to replace it.

  • Azzazzello
    Azzazzello 7 months ago +35

    To this day, still the best deep dive into shortages of 2020 / 2021. It would be wonderful to have another updated deep dive into this. Its only getting worse.

    • mamberu
      mamberu 4 months ago +1

      @MrPLC999 Not sure where you live, but plenty of stores _(especially chain stores)_ in Pennsylvania still have a lot missing from shelves even now.

    • MrPLC999
      MrPLC999 7 months ago

      Shortages? What shortages?
      I go to Home Depot and Walmart and Costco, and I get everything I need. No empty shelves. Everything is fine.
      Who exactly benefits by whipping up this bullsheet hysteria about shortages?

  • Deldarel
    Deldarel Year ago +1703

    "It's a philosophy, not an equation" is such a great way to also get to the meat of the difference between Japanese and American businesses

    • Doc Savage
      Doc Savage 7 months ago

      @Mohnnad Mercedes The logical conclusion of big jackpots, short term gains. As long as they get their payout before the house of cards topples over, then it's all good.

    • Jorian Kell
      Jorian Kell 11 months ago

      @Editors Practice that's exactly what they're doing. They want obedient slaves, not competent employees.

    • Editors Practice
      Editors Practice 11 months ago

      @Itinerant_Chuck I know you are but what am I? That's you. That's what you sound like

  • Cruel Abduhl
    Cruel Abduhl 8 months ago +34

    "Plastic resin can handle supply chain disruption", depends on the type of disruption. As a seller of plastic pipe in North America we've faced shortages all year. So much that we were told back in April/May that our manufacturers would not be able to take any new orders until the end of December.
    As for the flawed implementation of just in time inventory I've seen it first hand. One of our suppliers instituted it over 10 years ago when a new CEO cane in and it nearly ruined them. Impressive savings in the first few years made shareholders happy but delivery times for their products increased by 2x to 4x what they were historically. These products were critical components for water & sewer infrastructure and as the lead times got worse many customers went to competitors to solve the problem. Sales plummeted and they've spent the last decade fixing these problems and trying to restore their reputation.

  • Jim Henderson
    Jim Henderson Day ago

    Why not mention the mandate where people would not be allowed to work unless they got vaccinated? Causing operations to be short staffed?
    What difference does it make if workers are deemed non essential and not allowed to attend work?

  • VisualKitten
    VisualKitten Month ago

    This shows how fragile the global economy is.

  • Phillip S
    Phillip S 2 months ago

    This reminds me of a old REM song , It’s the End of the World as we know it, But I Feel Fine”.

  • Joao Ricardo Santos
    Joao Ricardo Santos 11 months ago +773

    "Less effective, less resilient, but can impress shareholders through short term savings." You just described pretty much every single company out there

    • San Bruno
      San Bruno 10 months ago

      PEACE
      BONANZA
      ABUNDANCE
      FREE THINKING

    • Alain D
      Alain D 11 months ago +1

      You forgot to add "in America". ;-)

    • The Lord Jesus
      The Lord Jesus 11 months ago +1

      #JESUS FIRSTt Jesus Is Love And The Way And Truth And Life And The Only Way To Be Saved Through The Creator Of All Things To Jesus Be The Glory

    • David Keefe
      David Keefe 11 months ago +6

      I read an article about how Boring behaved after Philip Condit became CEO and it said he ran it under the mindset of RONA, return on net assets, which sounds about right when you think they were cool outsourcing work for the 737 max, good for short term profit but bit them in the butt (though not as much as it should have). Profit off the engineering expertise of Boeing while killing the engineering that made Boeing what it was

    • F Fletch
      F Fletch 11 months ago +15

      This also explains why soooo many US firms sold out and moved manufacturing to communist China.
      They were all warned! They did it anyway....Then when China steals your IP you seem incredulous....

  • Gage Hayes
    Gage Hayes 2 months ago

    At 6:02 that delapidated street is in lake Charles, Louisiana. I live there!!

  • Robert Ronning
    Robert Ronning 3 months ago

    Don't forget the annual memorial Day price act and the annual Labor Day pricing in the spring break price hike.

  • Lena Hammer
    Lena Hammer 3 months ago

    Very helpful

  • AmyX
    AmyX 4 months ago

    I’d like to recommend we use the army for this labor shortage. Send our boys to the docks and trucks instead of Iraq. Easy choice - wanna lift cargo or risk death in a sandpit?

  • Arthur Soria
    Arthur Soria 8 months ago +1986

    The main problem can be summed up in the statement you made at 17:40 - Constructing a resilient supply chain requires long-term thinking, but most companies have not nurtured an environment that allows for that.

    • Paul Gauthier
      Paul Gauthier Month ago +1

      During the depression the US government banned stock buybacks -- with very good reason. Ronald Reagan repealed that law. This is the single biggest factor for the "short term" thinking you're talking about. Learn about it.

    • philipborg
      philipborg 2 months ago

      So happy to work for a company where that's actually the case. Our main priority is customer satisfaction and actually helping the customer, everything else is second. Result? A really solid customer base and rapid market share increase as the customer base increases. It's a world's difference from companies just chasing quarterly profits. But it really has to go through the whole company, top to bottom. It's also a world's difference between claiming to have a mindset and having a mindset, seen too much of the former.

    • Kate Goss
      Kate Goss 4 months ago

      I wonder why? 🤨almost as if the need to survive in the market put something of a pressure on employers to gamble and irresponsibly cut costs, even if it's not the smart thing to do

  • etzool
    etzool 4 months ago

    As a westerner that's lived and worked in Japan for almost a decade... this misses and misunderstands some of the very serious problems with the Japanese way of doing business (Toyota included) that does contribute to the current problems here. For the most part, though, really interesting, and definitely relevant, even almost a year later.

  • garcipat
    garcipat 4 months ago

    The amount of comercials in this video are unconfortable frequent

  • Liam JP Richardson
    Liam JP Richardson 5 months ago

    I Love Toyota

  • Jack Jack
    Jack Jack 5 months ago

    Thank you sir fantastic video

  • Locut0s
    Locut0s 8 months ago +415

    I work at a paint store. We are seeing massive shortages of paint because of the winter storm in Texas back in February destroying many of the factories that produce the resins that go into a large percentage of the world’s top coatings. That storm I believe was considered a once in a hundred year event so the power grid and factories were never designed with it in mind. Honestly though a hundred years most definitely should be within the planning horizon of any city or engineer of any large facility. 100 year events are actually pretty common when you realize that no 2 events have any kind of predictable start and end points and that you will have to plan for multiple such events in the construction of any large facility. Snow storms, floods, solar flares, hurricane etc are all dangers to power grids for example and most certainly should be planned for and are likely to be seen much soon than 100 years when all of them are taken into account. Just like mentioned here, major disruption is inevitable and not planning for it can’t be an excuse.

    • Daniel Corrigan
      Daniel Corrigan 3 months ago

      I'm 28 years old and I've lived through 2 once in 100 year economic downturns.

    • Micha G
      Micha G 4 months ago

      Texas was special. Texas is the only state who's power grid doesn't comply with federal stanard, which is why Newsome's comment of "Even though the people of texas don't seem to like me, If it were within my power to help you I would." (paraphrasing), because texas isn't on the Western power grid.
      They aloud buisness to dictate what was needed and what wasn't, and when you do that you might as well print the medal for the winner of the race to the bottom. Some of the systems they use in Texas are the exact same systems used in Antarctica, but the code on how they're installed is completely different.
      Texas was an example of people willfully giving themselves over to political propaganda, and being to ignorant or prideful to understand how they messed up to fix it.

    • Shawn R
      Shawn R 4 months ago +1

      @AL2VAR Taiwan does not have a water problem.
      It is surrounded by water.
      Taiwan has a salt problem.

  • Richard Ivonen
    Richard Ivonen 5 months ago

    If something can go wrong eventually it will go wrong.
    It's not hard to figure out.
    Wherever there is a vulnerability there should be redundancy to ballance the scales.

  • Brian Cooley
    Brian Cooley 6 months ago

    It’s because it’s the apocalypse

  • Line
    Line 6 months ago

    Demand with everyone at home outstripped supply. Especially in the technology field because of a lack of chips and such

  • cory stadman
    cory stadman 6 months ago

    All of these things you discussed Began because of covid, it is the impetus of the issues

  • Mustafa M
    Mustafa M Year ago +616

    "Silicon is both needed in computer chips and vaccine vials"
    Karen: "I told you so"

    • Celifrog
      Celifrog 10 months ago +1

      Lmaooooo

    • INTERNERT!
      INTERNERT! 11 months ago +1

      still waiting for my Vax 5G to kick in

    • JONATHAN RODRIGUES
      JONATHAN RODRIGUES 11 months ago

      Karen may have a sharper point than Haji.

    • Jorian Kell
      Jorian Kell 11 months ago

      @George George that's silicone not silicon.

    • Laura Thomas
      Laura Thomas 11 months ago

      So again, the ship workers had Covid and off work for quarantine, AND silicon needed for vaccine vials. I think we can place some blame on COVID-19.

  • Mike 1462
    Mike 1462 6 months ago

    J A N U A R Y 13:20

  • Putumban
    Putumban 7 months ago

    2:43 wasn’t that the boat that got stuck in the Suez Canal?

  • Atomic Viking
    Atomic Viking 7 months ago

    I can summarize it better... So, the reason there's a shortage everywhere is because the media told everyone that the world was ending... Then it didn't...

  • 野村ERIK
    野村ERIK 7 months ago

    We should have let the pandemic run amok and solve itself.

  • Giph
    Giph Year ago +1017

    I can’t believe he led with a seemingly obscure explanation of the boba supply chain back to Taiwan but then didn’t revisit the Taiwanese connection to semiconductor production dominance at the end of the video

  • Goudan'uff
    Goudan'uff 7 months ago

    man, im never gonna get a ps5

  • Bingle D. Oop
    Bingle D. Oop 7 months ago

    is the music for this series the same person who does work for the Lore podcast?

  • Alex Wohlfarth
    Alex Wohlfarth 7 months ago

    It's because we are living in the end times.

  • Robert Aylor
    Robert Aylor 7 months ago

    6:40 so essentially a total breakdown in a finely tuned coincidence of want.

  • David Jones
    David Jones 11 months ago +2319

    The supply chain version of living paycheck-to-paycheck. Get the flu and miss a few days of work. Paycheck is short. Overdraft fees hit further reducing your balance. Then the late fees kick in when overdrafts stop being covered. Skip the car payment to make rent. Borrow money from your cousin for the kid's school supplies. You'll catch up eventually. Maybe.

    • Jaiiy Ouhz
      Jaiiy Ouhz 7 months ago

      @A Kayfabe Turn your life around with this simple rule: don't ask what the world can do for me. Ask what you can do for this world.

    • Cody
      Cody 7 months ago

      Don't live paycheck to paycheck. Have a reasonable savings account for cushion. A good rule of thumb is to NEVER have less than $5,000 in savings. Start saving early before you get married and have kids so you won't get the opportunity to say, "I don't have the money to save." You've already messed up. Never borrow money. Not only does it make you look like a deadbeat, but it puts you in more and more debt. Credit card is ok, just monitor it closely.

    • A Kayfabe
      A Kayfabe 7 months ago

      Story of my whole life. Never get ahead just keep getting more behind until there’s nothing left. Some of us have it never end and ended up homeless or stuck for years and have no one on Earth to help us. I’m fact then you, like I, lose hope and faith in humanity and that’s when you realize no one cares. And if you are like me, have no family at all and no security and no future, and no person on earth willing to give me a helping hand, unless someone steps into my life and cares, it will just be another 30 years of the same. That’s not living, that’s just existing on earth for no reason.
      Too many people do this and too many others have everything and still don’t care. People really struggle and really suffer and really do give up because there’s no help.
      You don’t catch up without a miracle, or someone saving you with generosity, or death. And that’s sad.

    • Jaiiy Ouhz
      Jaiiy Ouhz 8 months ago

      @iNuclearPickle Your bills reflect your consumption choices. They are not carved in stone. Too much rent? Find roommates or a cheaper location. Car payment unaffordable? Drive a used, older but reliable car to reduce the loan, insurance and maintenance costs. Think.

    • iNuclearPickle
      iNuclearPickle 8 months ago

      @Jaiiy Ouhz hahahaha how can we do that if our bills eat up an entire check and most people pay rent. Also for my household it’s $150-200 a week for food and that food is barely enough for the week

  • Egg Head
    Egg Head 7 months ago

    History repeating itself. Great Depression folks!

  • james murphy
    james murphy 7 months ago

    That Tiny House hobby

  • elias197859
    elias197859 7 months ago

    It's funny that if companies would just invest more into ensuring their employees are happy at work and well compensated, they would profit more. Who's going to be more productive, the guy who hates waking up in the morning because his life is fucking miserable, he feels like he doesnt get paid enough, every minute he spends at work is a drag which makes him dread going to work even more, which makes him view work as even more of drag, so on and so forth. Or the guy who is excited with his job, or at the very least totally fine with being there, he feels like hes getting paid fairly or even better he feels like hes getting paid more than he should be, which makes him more motivated to do a good job, he actually cares about his work and feels passionate and inspired... I mean the difference between doing work that is actually fulfilling and satisfying and doing work that feels totally pointless and soul crushing is so huge. just putting that extra whatever necessary to make your employees not simply hate being alive unsurprisingly increases productivity immensely. It's really such a simple concept and it's ridiculous that there are any companies out there that still do things in a way that make their employees hate working there. And even productivity aside, who would want to be in charge of a business that is employing a bunch of people who are miserable, especially knowing that it's your fault they're all miserable just because you want to try and scrape out some extra money for your own grubby mitts? I can say from experience whenever I have worked somewhere that went that extra mile or that paid me a little bit more to the point where I felt like I was getting even a little bit overpaid, it made me so much more motivated to do a good job and so much more okay with waking up and going to work. And on the flip side whenever I have worked a job that felt like I was getting underpaid, it would reflect noticeably in my work and how much I gave a shit. If I feel like you're wasting my time with weak compensation then I will have no guilt about screwing around, wasting your time, and half assing things. As an employer, maintaining a positive and encouraging environment makes a world of difference. Your employees are giving you your job just as much as you are giving them theirs. But I guess in the end it's cheaper to just install suicide prevention nets outside of your windows instead of providing your employees with a job that's not so awful that they'd rather jump out of window than spend another second there. Or hire workplace therapists instead of providing a workplace that doesnt hurt your employees so much that they literally need therapy. Oh well i guess it's not all bad though... all those years i wasted working at shitty shitass shithouse making dick pay were worth it when I finally got to see the CEO jump off a diving board into a pool of gold coins. Or i mean fly into space in a dick shaped rocket. Whatever it's all the same. I'm just glad my boss got to make an extra billion this quarter and all it costed was mine and all my coworkers will to live

  • Pax
    Pax 7 months ago

    I don't understand why they don't just have some of the transportation route through other ports...

  • Martin Parmer
    Martin Parmer 11 months ago +310

    I was a Materials and Demand manager for more than 30 years. When the JIT concept took over, the only thing my bosses would ever consider is practically zero safety stock regardless of demand fluctuation nor vendor/materials reliability. At the same time, they required perfect shipping on time. I spend my whole career in this pressure cooker. I wouldn't wish it on my worse enemy. I knew JIT was the reason behind the shortages as soon as they started happening.

    • XyphonXero
      XyphonXero 11 months ago

      @z beeblebrox The better question looks to be; Who is Kristopher working for?

    • Purple Nonsense
      Purple Nonsense 11 months ago

      @Martin Parmer um...Martin, i never said you were fake...

    • Martin Parmer
      Martin Parmer 11 months ago

      @Purple Nonsense anyone who's lived in the production planning materials management world would easily recognize from my post I'm no fake and no liar. Jit has tons of benefits but when the break comes, it's painful and difficult to fix.

    • Geoff Donnelly
      Geoff Donnelly 11 months ago

      I worked on oil tankers, and we had a JIT system for spare parts. The system should have been called JTFL......

    • flyingmobias
      flyingmobias 11 months ago

      On avg it may be the most profitable

  • M m
    M m 7 months ago

    Just in time , has helped keep dollars available but the downside is that cyclic spikes are not easily overcome.

  • Franco Melendez
    Franco Melendez 7 months ago

    Before this sites give and put information out they need to tlk the truth and to politicians because they need to live and next pay the operator the fair expense so shut up and start where need to be

  • General OfWar
    General OfWar 7 months ago

    There is a shortage of truckers because of the Government, the government is the first domino of all of this not indistury.

  • Nickolas Serra
    Nickolas Serra 7 months ago

    Ohh Tesla?

  • Scott Martin
    Scott Martin Year ago +378

    The "two ports" of Los Angeles and Long Beach are actually adjacent to one other and effectively operate as a single port complex -- even more of a bottleneck.

    • Kevin Dahlberg
      Kevin Dahlberg 11 months ago

      @timmonk47 from my understanding oakland is not being utilized, pre-pandemic they wanted to use it for coal export but the inviromentalist shut it down.

    • timmonk47
      timmonk47 11 months ago

      @M Maranta Oakland is comparatively small

    • timmonk47
      timmonk47 11 months ago +1

      @Ming Mongo mariners call LA "Pedro" while it says LAX on the schedule. Long Beach is LGB

    • timmonk47
      timmonk47 11 months ago

      @Ming Mongo the Port of Los Angeles is in San Pedro (and Wilmington) which are part of the City of Los Angeles, the Port of Long Beach is a separate port, directly adjacent in LA County, both ports are dependent on the same labor pool and regional infrastructure

    • M Maranta
      M Maranta 11 months ago

      Oakland has a port. I see cargo ships coming in the Golden Gate every day

  • JoAnne Skach
    JoAnne Skach 7 months ago

    We need to incentivize our truck drivers to be on time, not punish them if they are late. It’s not like they can control traffic or weather. We should also be doubling their pay especially with the Biden gas prices and hiring more of them. They are the backbone of our country.

  • Mensa Graham
    Mensa Graham 8 months ago

    Are you saying Gavin Newsome did this all by himself? We knew he was worse than useless but this is an extremely new low!

  • Gmail Account
    Gmail Account 8 months ago

    Boba? The name is more important that what it actually is...

  • huajie666 liu
    huajie666 liu 8 months ago

    This video really confused me.

  • GT-R Nights
    GT-R Nights 11 months ago +173

    When I played Factorio, my production lines had buffer supplies in them, so that if for some unforeseen reason my production line shut down, the downstream factories would have a buffer of supplies that would last until I could get the production line up and running again. Production lines were always higher ramped than necessary to provide for the factory, so the buffer would fill until it was full, and the buffer size was set so that it was excess, but not a terribly large amount. Just enough to get by on during an emergency.
    It's sad when video game players are more familiar with proper supply chain logistics than the so called experts who do it for money. Hell we do this shit just for fun.

    • GT-R Nights
      GT-R Nights 11 months ago +1

      @tomurko I certainly get that it is overly simplistic, but that's my point. The actual concept of lean in itself is not that complex. I'm not claiming to know everything there is to know about supply chain theory because I played Factorio. Understanding fundamental concepts is not really that difficult, and sometimes practitioners end up forgetting or not implementing the fundamentals for lots of various reasons. Your attempt at sarcasm is the only over-simplification here.

    • GT-R Nights
      GT-R Nights 11 months ago

      @FPK My job is literally Risk Management, and I'm a Director. When it comes to Factorio, the stock that I have for lines is lean in the sense that not every one has a buffer, only the ones at risk of a supply shortage for some reason. The buffer supply I have is kept low enough to provide in an emergency, but not so high that I'm not OK with the loss if I have to just dump it all or it never gets used.

    • tomurko
      tomurko 11 months ago +1

      'I played factorio once so now I understand supply chain theory'

    • Florin Jurcovici
      Florin Jurcovici 11 months ago

      It's not sad, it's reasonable/logical. When you play a video game, you are interested in your "enterprise" to be the most efficient and create the most value, of all competing enterprises, from the start of the game until someone launches a rocket. When you're the CEO of a real-life corporation, you don't plan on staying there forever, your driver is personal gain and shareholder satisfaction for the short period you'll stay at the helm of that company, not the well-being of the company. Most shareholders at most corporations are not sticking to their shares long term either, so they'll definitely like someone maximizing shareholder value short term more than someone thinking long term.

    • Peter Pan
      Peter Pan 11 months ago +1

      The real problem with supply buffers:
      Yes, they do cost a bit, and this bit can make a world of difference in industries that sell with razor thin profit margins.
      If your competitor says "nope, i won't build up buffers for the moment shit hits the supply fan", then you can either: see that competitor undercut your product, or cut your buffers and their costs too.
      It's a rats race to the bottom, everyone wants to produce more for less.
      If you aren't willing to join the race: you usually lose by default.

  • John Cerro
    John Cerro 8 months ago

    Cruse ship over work there Employees and charges a ton of money to go on a cruse

  • Adam Arzo
    Adam Arzo 8 months ago

    How can you say it's not because of covid and then literally explain that it was because of covid. The ultimate fact is that without covid happening, we wouldn't have a shortage because people would be at work and things would be operating as usual.
    The title is wrong. The shortages, most of them, are covid related. Not debatable.

  • Moe
    Moe 8 months ago

    There is no shortage of truck drivers or teachers; just market failures. There are TONS of both simply refusing to provide their services for unacceptable wages/working conditions. Make any fancy fact-twisting argument you wish, but the truth remains.
    There will be THOUSANDS AND THOUSANDS of licensed people refusing to use their licenses.
    I can work about 8 hours a week selling real estate, and make more than my teaching salary. So despite incredible success in the classroom, the general public (strangers, in essence) is simply not worth my time.
    Make all the stupid right-wing arguments you wish, while ignoring your free-market ideology. The facts remain; we refuse. Good riddance

  • Zackary Bowen
    Zackary Bowen 8 months ago

    It's not COVID... But it is also COVID... Ok,

  • Earthling Lou
    Earthling Lou 11 months ago +351

    Our "just in time" inventory management in the age of global pandemics has now been proven to be our Achilles' heel.

    • Alberta Wheat
      Alberta Wheat 11 months ago +1

      @Johanna Geisel Very good response.

    • Johanna Geisel
      Johanna Geisel 11 months ago +1

      @LupusAries You have to keep in mind that the Soviet Union was an extremely non-industrialized and agrarian state before their revolution, and I think China was too.
      Eastern Germany was destroyed, so it also had very little infrastructure.
      Those plans were made to build up or rebuild infrastructure and industry.
      If we tried a planned economy in a country that already has a functioning infrastructure and industry, you wouldn't have to put that many ressources into building one.
      One could concentrate on fullfilling the people's needs and wishes.
      In the former attempts they basically always hat too little of everything. That's not a thing we have to worry about in a developed nation.
      And yes, of course one would have to put in a certain kind of flexibility. If the carrot harvest is bad this year, everybody gets fewer carrots or you have to import.
      I also think you should plan that economy under a maximum of democratic participation.
      That's also something that the former attempts lacked.
      With the Internet we can take in the wishes and needs of all the people and also have them give their OK for the plan. One could ask the populace where the ressources should be put.
      Oh, and one may not have to plan everything. There are probably things that you can eyeball and leave to the small producers.

    • LupusAries
      LupusAries 11 months ago

      @Johanna Geisel They mainly didn't work due to the goals and their longterm nature, remember they had 4 year plans, five year plans and 10 year plans and they were completely inflexible.
      The inflexibility is an issue that will still be a problem today.
      And the downside if a connand economy us that they entail a loss of job freedom, you won't be able to choose a job, you will get assigned one.
      Oh and university/college places will be assigned on a requirement basis, with probably a lot of courses being canned, because there are more effective ways of training workers for certain jobs than college courses.

    • The Cheaterman
      The Cheaterman 11 months ago

      @FUSTER CLUCK 🐔 Meh, if we can have rad-resistant CPUs in space, surely we can bury a few critical power/data lines to harden them! I'm not really worried about that kind of implementation detail, I'm more worried about the pushback being a socio-political one...

    • The Cheaterman
      The Cheaterman 11 months ago +2

      @Johanna Geisel I kinda live in a socialist country, and it #FeelsGoodMan, when you're getting laid off but get decent unemployment to pay your bills and support your family! So yes - I'm clearly not the one who will say "blah blah Communism" ; while I can _absolutely_ see why most western people (particularly in USA) would see it that way...
      So yeah I guess we both agree :-) it would be better, but it can also be scary to a whole category of anti-commie people...

  • Doug R
    Doug R 3 months ago +5

    Happy to see it at least got a mention that one of the keys to TPS was the elimination of rework/getting it right the first time. More companies should pay attention to this!

  • Shogo 昇剛
    Shogo 昇剛 3 months ago

    What made these shortages is the wastefulness of human-kind.

  • Cathode Ray
    Cathode Ray 7 months ago

    Did you mention over-regulation, particularly emissions standards in California. That and their insane lockdown strategy are the cause of the backed up supply chain.
    The strong emissions standards for California limit the availability of rolling stock (e.g. Tractor Trailers) within California itself. This means that there are effectively fewer trucks, etc. available to unload ships.
    The lockdown strategy also paralyzes the distribution chain because material has no where to go, unless it's considered essential. This clogs up the cargo storage areas that would have been available and bottlenecks the chain.
    Top that with the high price of gasoline and diesel fuel (~$7.50/gal) in California coupled with the high cost of registration/inspection for vehicles in California ($350+) and additional taxes, and you get lowered profits and therefore fewer people willing to be involved in transportation.
    So, if you really want to blame somebody for the impact on the rest of the country, blame the actions, programs, and laws set up by the Democratic Party politicians who are running California into the ground.

  • richardj ellis
    richardj ellis 8 months ago +782

    I hope people start to realise how much 'stuff' comes from abroad, and start to think about growing\making things more locally. With less things coming from places like China.

    • E. Camilo
      E. Camilo 6 months ago

      You wish. America is the land of consumerism. With current immigration policies there is no way producing in the US will have the same net cost as in Asia. This will not change. Next continent is Africa. Things will be produced there as Asia is getting more expensive.

    • G force
      G force 6 months ago

      Good idea to do that though we gotta open the border ti any immigrant who wants to come so we can increase are workforce and have a chance competing with China that has 3 billion people

    • Jesus has given you all. Repent or die.
      Jesus has given you all. Repent or die. 6 months ago

      Repent to Jesus Christ!
      “Therefore, my dear friends, as you have always obeyed-not only in my presence, but now much more in my absence-continue to work out your salvation with fear and trembling,”
      ‭‭Philippians‬ ‭2:12‬ ‭NIV

    • debra firestone
      debra firestone 6 months ago

      It’s a great thoght but it will never happen

  • Jo nne
    Jo nne 8 months ago +460

    The chip shortage was already very much real before Covid. The chip shortage started in 2017 with crypto miners buying up gpu's faster than they could be manufactured. Virtually every version of gpu sold out world wide. Manufacturers then tried increasing production at the same time that car manufacturers increased production, supply chains began to backlog, etc.

    • geforce now
      geforce now 2 months ago

      @Joe Mama Can you tell me what stockx is? Is it like ebay?
      In your case, that's fine since we're in a high price demand short supply situation. It's fine to buy a gpu as long as it has a warranty that works so someone doesn't spend over a thousand to be the unlucky .00001% outlier customer of a defective gpu.
      At least for me, I hate to spend over 1k for a defective gpu that doesn't have a warranty. Like how no one is fine with a new $20k lemon car with no warranty.

    • Joe Mama
      Joe Mama 2 months ago

      @geforce now nah bro just get the gpu off stockx or something i paid 200 on top of retail for my 3080 but it could have been 1000 more and i still would have found it worthwhile. The amount of utility, gaming and things I can do with that 3080 far exceeds any marginal savings of a few hundred dollars to “wait until 2023l

    • Cooper Gates
      Cooper Gates 3 months ago +1

      @M corp Kind of ironic how some coins implemented ASIC resistant algorithms so people who already have GPUs could mine without getting blown away by much faster hardware for mining, given that people wanted those GPUs for all sorts of purposes. Nvidia did come out with dedicated versions of GPUs for mining, and even the 1070 Ti alleviated some of that because it used GDDR5, not the X version, so non-miner GPU users didn't go for it as much.
      Making easy money off mining isn't really true for those with pricier electricity. On the other hand are students living on college campuses blasting their mining computations without footing any more dough for their electric consumption... some places would begin to charge them beyond set limits, though.
      Inevitably, profitability of mining a coin doesn't last, either because exploding amounts of mining produce so much of the coin that its value plunges, or, like bitcoin, the total amount of units is capped so the same hardware effort produces progressively fewer and fewer units.

    • noname
      noname 3 months ago

      Yea they should have started making more chip factories long ago with so many new electronics coming out we didn't have like smart watches, everything for smart homes, cars.

  • Sean Geverts
    Sean Geverts 8 months ago +27

    just in time logistics: you throw one wrench in the system and your constantly behind the supply curve. you throw multiple wrenches and it creates a cascade effect that threaten an entire breakdown of the system. imagine if we had a MERS outbreak or a deadly airborne fungal outbreak. the entire system would collapse and it would be full blown apocalyptic.

  • GamerDadTV
    GamerDadTV 6 months ago +10

    I have enjoyed your videos, but this one was exceptional, and you explained a complex problem, about a multifaceted system, in such a straight forward way. Thank you. :)

  • J Fitz
    J Fitz 6 months ago +2

    Such a good explanation! Humans almost always prefer a quick, easy, & over-simplified solution; as opposed to a nuanced & more complicated one that better fits reality.

  • mrkleinig
    mrkleinig 4 months ago +1

    This was so good. Thanks for all the effort and the clear explanation! Taught me a lot.

  • Colonel Phox
    Colonel Phox Year ago +86

    As a trucker I just wanted to say there's no shortage of truck drivers, only a shortage of drivers willing to work for garbage pay. We're tired of working for the equivalent of less than federal min wage so a lot are quitting but I assure you that there are plenty of drivers still driving.

    • rayden54
      rayden54 11 months ago +1

      It's not so much people quitting as people retiring and no one new wanting to do it.

    • Chris Graham
      Chris Graham 11 months ago +1

      Truck drivers deserve a decent livable wage, until the microchip shortage is over and the autonomous vehicles eliminate the profession.

    • Colonel Phox
      Colonel Phox Year ago +2

      @blue M&M what does that have to do with the topic at hand? Also most of the jobs that the "illegals" are taking are jobs none of us want to do anyway... Like working the farms picking fruits and nuts in the hot ass sun all day long, or working at a meat processing plant... Landscaping. I don't want to do that stuff so they can take those jobs, somebody's got to do it.

    • Michael Garry
      Michael Garry Year ago +4

      @blue M&M You know that most illegal immigration into the USA doesn't actually come through the southern border right? That you are just repeating nonsense that has long been debunked? Also that when the USA was at its strongest and paying decent wages the border was wide open and people crossed all the time. Its almost like you are aiming at the wrong enemy here.....

    • blue M&M
      blue M&M Year ago +2

      This is why you need a secure southern border.

  • Bond 007
    Bond 007 8 months ago +4

    These videos are always well thought out and done. Really a great contribution.

  • Edgetown TX
    Edgetown TX Month ago

    I've learned so much about supply chains, the work force and human nature. Thank you, Wendover Productions

  • Christopher Speer
    Christopher Speer 3 months ago +3

    Titanic’s design wasn’t flawed - it was pretty well designed, so much so that people became overconfident claiming it was unsinkable.

  • Jay J Cogg
    Jay J Cogg 6 months ago +10

    Products made in the USA do not typically get stuck on container ships! Hopefully Covid has taught a very valuable lesson to the United States that they need to still produce their core products here in the USA! Especially those with strategic importance.

    • Emanuel Ramos
      Emanuel Ramos 6 months ago +1

      Bruh be careful. Speak too much logic and you'll cause a problem.

  • Brandon Holmes
    Brandon Holmes 11 months ago +173

    This is your greatest video so far. I am an economics professor and you have just summarized in 20 minutes what it would take months for students to learn in the classroom.

    • CapriciousBlackBox
      CapriciousBlackBox 11 months ago

      @Noe Popkiewicz Oh look, the mind reader is back. I agree with you on one item however; I also cannot say this was a good talk (I prefer my interlocutors *not* re-frame my arguments disingenuously). Cheers to you.

    • Noe Popkiewicz
      Noe Popkiewicz 11 months ago

      @CapriciousBlackBox And you talk about being imprecise, oh the irony.
      'Almost everything? Well then what about X?' - that's dishonest and you know it.
      'Lockdowns in Asia were brief and only slowed down production? Are you saying there were no shortages?' is comical at best.
      'Nobody was making stuff, or delivering anything, that's why ports are overfilled with endless containers still waiting for processing, and entire container ships waiting for weeks in lines to dock ports' in your view explains the situation, well - good luck.
      I want to say good talk, but can't really say that.

    • CapriciousBlackBox
      CapriciousBlackBox 11 months ago +1

      @Noe Popkiewicz "Using it wrong?" That's weird.....I didn't know a person could ask a question "wrong." Who knew? As for the rest of your acknowledgement about the impact of lockdowns....unimpressively imprecise...("not really"). To attempt to minimize the impact of global interruptions as though there'd be anything even remotely similar to the widespread shortages across myriad different goods categories we are currently experiencing *sans the covid crisis* is laughable. That's not to say there aren't market weaknesses that contributed....nothing operates in a vacuum....but again; when nobody is making stuff.....there's no stuff. The same holds true for shipping; if nobody is delivering stuff.....stuff does not get delivered.

    • William Martin
      William Martin 11 months ago

      You're saying, that to educate youth for high paying jobs we don't need high cost educations.

    • Noe Popkiewicz
      Noe Popkiewicz 11 months ago

      @CapriciousBlackBox so you do understand what "almost" means, just using it wrong on purpose?
      Did lockdowns had an impact? Yes, they played their role in it. Were X weeks of lockdowns the reason why there are shortages of everything for XX months? Not really.

  • Brian Hillis
    Brian Hillis 6 months ago +7

    A similar argument can be made about building maintenance and energy production. False profitability calculations being used to justify getting rid of maintenance staff or cleaning staff in favor of contractors with no vested interest in the company. Contractors often profit by ignoring a problem they recognize but aren't responsible for to increase costs.

  • Derek Bass
    Derek Bass 6 months ago +6

    It's fascinating that the auto industry had these problems recognizing which parts of their supply chain should be flexible and which shouldn't. Car construction today is based around identifying 'crumple zones', parts of the car that can flex and compact to absorb energy in a crash, around a rigid frame. Their supply chain is no different: some parts can flex and some must remain rigid for it to work.

    • John Smith
      John Smith 2 months ago +2

      You hit it right on the head. Principles, principles, principles! Details differ, but principles prevail.

  • dishsultan
    dishsultan 7 months ago +5

    This is the best video that I have seen on this channel. Excellent, in depth, and understandable explanations. Thanks!

  • Wildchild_inc
    Wildchild_inc 6 months ago +2

    Even taking basic production management classes, the flaws of how this happened are evident because they're old practices that never accounted for global shut downs or considered the reliance of importing over domestic production.

  • dave
    dave 11 months ago +168

    This is just so cool. I just started working at a Toyota Plant and everything mentioned on this video is thoroughly taught to every team member and reflected throughout the plant with logos and billboards. Keep pumping quality videos Wendover!

    • 2WhiteAndNerdy
      2WhiteAndNerdy 11 months ago

      @76MUTiger Nailed it. Beautifully said.

    • 76MUTiger
      76MUTiger 11 months ago +6

      Awesome feedback! The workable system (JIT) is known and learnable. Many people know it. US manufacturing leaders who don't understand this should get their MBA tuition reimbursed and then they should get fired for failing to learn what was so imminently learnable. They exposed their organizations to devastating risk through their own negligence.

    • 2WhiteAndNerdy
      2WhiteAndNerdy 11 months ago +4

      I worked at a Toyota plant too and did a lot of cross campus JIT deliveries. Their level of efficiency is just mind boggling. Hectic as hell for us assembly workers but darn impressive to witness from a business perspective.

  • NKG ___
    NKG ___ 7 months ago +14

    5:10, my dads a truck driver and based on the stories of how his company treats its workers I’m not surprised there aren’t enough people wanting to be truck drivers

    • Max0r847
      Max0r847 6 months ago

      Welcome to capitalism :D

  • KritiKat
    KritiKat 7 months ago +29

    The archival footage of the factories in Japan is genuinely cool

  • Ugly Bastard
    Ugly Bastard 7 months ago +4

    This might be your best video yet, it's definitely the one I feel the most personal passion in.

  • Kathryn McCarthy
    Kathryn McCarthy 4 months ago +2

    Toyota's revised system is like having an emergency fund savings rather than living paycheck to paycheck. After fully understanding the system it's pretty genius.

  • ocfos88
    ocfos88 Year ago +66

    Ah yes, the one issue in the world; Companies impressing Shareholders at all costs.

  • William Hahs
    William Hahs 7 months ago

    Thanks for this video. Been trying to explain this to people but this video does a much better job than I ever could

  • Gio W
    Gio W 8 months ago +6

    PHENOMENAL video. Thanks for putting this out and informing people simply but enough that its in depth and easily understood.

  • Lee Scott
    Lee Scott 2 months ago

    Brilliant, simply explained & clear video linking the key areas, thank you

  • INikeAir
    INikeAir 6 months ago +7

    Why so many thumbs down? This is an amazing video with lots of insight. The best part is where he mentions they have built teams of workers predicated on respecting people