Here in Asia, though we are not affected by the air restrictions, we are indirectly affected still. Some imported goods are running out. Some business are doing much better such as hotels and restaurants.
JIT depends on the overnight delivery costs being low. In this case that chain has been cut and couriers within Europe are just quoting one extra day to deliver by truck rather than plane. In future (as stated by the US Army) oil prices are likely to go up considerably, at which point the trade-offs of JIT change radically ie which is cheaper the shelf in the warehouse or the additional cost of aviation fuel over truck fuel. As it stands, the volcano is a relatively cheap way to point up this major weakness in supply chains and give us a chance to adjust before a real crisis occurs. Remember the Japanese factory that went off-line before we worked out that it made 70% of the resin for all IC packages? In the meanwhile, we enjoy skies free of contrails for the first time in 20 years
It's the downside of just-in-time delivery. Once you suck all the slack out of the system any disruption can turn into a major problem.
There is upside for those companies that have flexible manufacturing on multiple continents of course, like GlobalFoundries wants to do.
Airlines loosing 200M$, what about related co.s effected due to damaged biz. flow? Can anyone make an estimation how much will be lost due to "ash"-- i bet for 25B$ in 2Ws
As mentioned in this topic, almost all supply chain especially from Asia>EU is having chaotic times. Loads are huge, closely all stocks are full. If you try to get a part on move, be ready to be freaked. Nearly all EU electronic customers depending on Asian semi. fabs. will face line down in coming week if situation will not be fixed somehow. What supply chain providers tell, things arent that clear for this whole week cause of volcano, if it'll relax, stay calm and let flights to begin than for sure none of the carrier will be excellent to start up posting, as they have tons of problems and crazy customers on neck as i do rushing for action.
God showed his great might with n eruption in remote island, causing chaos all around globe, maybe its time to turn back to power of pray!
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