From a vendor email in our inbox recently:
How is COVID impacting companies thoughts on supply chain concepts?
Major corporations realized the “Just in Time” ”JIT” concepts they had implemented failed miserably under the pressure of the pandemic. As such all companies are reevaluating what are the new inventory levels they must maintain to prevent the service failures to their customers. This will push up demand for more production as well as warehouse square footage. Additional warehousing is a huge problem as current space is super tight, the cost to build new space is extremely costly and additional labor to staff is no where to be found. A new phase replacing JIT is now “Just in Case.” Companies are also actively “Demand Shaping” their product lists and product sizes based on optimizing their supply chain capabilities.
