wanted33
Well-Known Member
- Joined
- May 30, 2014
- Threads
- 14
- Messages
- 701
- Reaction score
- 240
- Location
- Down South in Dixie
- First Name
- Jim
- Vehicle(s)
- 2018 GT Convertible, 2006 GT Coupe
It's called a "pull" system, a means of reducing costs by lowering the amount of money you have tied up in inventory at your location. When it gets close to the time you need a part (say, a steering wheel), you "pull" it from the supplier by ordering it at the appropriate time.
A wrench gets thrown into this when Mexico's new president announces an increase in minimum wage. When that happens, a bunch of folks making more than the minimum wage are suddenly not making as much more than they were before. They go on strike for 3 weeks and Ford can no longer "pull" the parts they need because the supplier has stopped making them for the moment.
I see, thanks Zook. Gotta love the Global outsourcing thing. After my first career I worked for a Fortune 500 company that had a "just in time" ordering system in place. But, this company had more than one supplier set up for all the needed materials. The big boys would have flipped out if they could get supplies when needed. Down time meant lost profits, can't have that.
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