There are tradeoffs between efficiency and robustness. Efficient systems are sometimes fragile. Robust systems have some redundancies. For goods and skills of strategic importance, having regional or onshore capacity is very needed. It's like insurance in case of war.

I ordered a load of tiles from Guangzhou, China. It took 18 days ocean shipped to LA, California. Then from there they took 38 days by rails to NYC.

Regionalization is intelligent. They can get back supply chain resilience at the cost of a small amount of supply chain efficiency. Big picture wise though there should always be product available AND if for some reason one region has a problem...product can be shifted from one region to help with shortages. That's if companies do things intelligently and not on the cheap, those companies will have a problem at some point as well.

I'll give you a supply chain/engineering analogy that might help to clarify the issue. As somebody that has worked in oil refineries, we build tankage into many areas of a plant for the express purpose to 'buffer' one processing unit from another when an upstream unit has manufacturing problems. Operations wants these tanks, but they are expensive to build/maintain so there's always a desire not to install them. However, they become indispensable during major plant issues. That's essentially what happened globally. There was not enough 'surge' capacity in the global supply 'system' to effectively 'buffer' the issues. Hence, you have tremendous backlogs sloshing through the system. For example, a CNBC video on this subject made the comment that it was taking twice as long for a ship to make the trip from an Asian dock to an west coast dock. None of this is surprising to me having watched many plant upsets over the years. You are always thankful for those storage tanks when the major upsets come along. If you don't have them, you get our current worldwide global supply chain. This will take months to line itself out. That's because the current supply chain was created to minimize cost when there are few 'upsets' occurring. They were not designed to be robust in the face of disturbances.

Mexico is a perfect country for smaller businesses looking to nearshore manufacturing. Cheap labor; a larger young population, skilled in manufacturing, and above all they’re integrated into the USMCA free trade agreement with the US and Canada. Not to mention Mexico has the most free trade agreements in the world. So that gives even more up side potential for businesses that want to export elsewhere.

Im from bangladesh and they are probably paying $2 to assemble the boot compared to USA where it might take $10-15

Kudos for getting the map of India correct in the maps !

One of the biggest bottleneck is PORTS!! Why do we only have one major port in LA? Govt needs to build 30-40 ports around our coastal states

Regionalization is supply chain resilience by another name. Yes, some investment will be required but you loose a lot more if you're unable to fill orders in a timely manner, if they get fulfilled at because of geopolitical sensitivities.

Amazing information about nearshoring , reshoring and regionalization

Mexico is going to be the next big thing on the western hemisphere, with a market as large as the US right next door and a favourable internal demography, Americans and Mexicans are set for the next two or three decades. Definetly an alternative to china if American politicians decide to run with it in the long run.

Great video. Keep it up

As long as lean and JIT are metrics drive like say GM and not objective driven like say Toyota , there will be consecutive hiccups in the entire chain. Even though lean and QC and many good management techniques were thought of in the us first ( Deming, Juran and Taylor) they have been unable to deploy such techniques properly.

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It's high time to remove China from supply chain equations and look for other developing countries.

Great knowledge

I believe that the cost of reshoring is overall far higher that bearing and enduring a few years of products shortage and cost increases due to pandemic.

Good report made by WSJ

What does this have to do with supply chain when companies stockpile goods. US simply don't have good reliable distribution network in US.

Nice video.

Exactly, especially in PCB Assembly industry,not only Cov, but also trade wars bettween usa and China, War battwen Ukraine and Russia, trade barriers both of such effects our replastionship with customers a lot, but thanks to our branches facilities in 8 countries, we did help to solve such issues, and let's us have the ability manage supply chain so well, and of course keep the cost at the same lever. This video from WSJ is really a good one, thanks, just find one telling the true.

Reshoring might work for a few high value products, but the west certainly doesn't have the type of labour force needed to work at those mind numbing and repetitive factory jobs where cheap, mass production items are made. The US companies will probably move a lot more industry to Mexico and Europe will operate more in the Balkans.

Mam, nice explain.

No mention of labor cost in each region

Wouldn’t it be cheaper to just increase inventory a bit rather than building entirely new factories in other countries?

It is not just labor cost, but capital, technology, skilled labor and availability of tools/materials. A supply chain that took decades to build will not be remade overnight and crates redundancies that also increase costs, and resource/labor scarcity. Politician's Wet Dream.

Very interesting video, I learned a few new strategies that sound like smart ideas and may fix some problems. The costs of moving those offshore supply lines is a lot, so this may be something that won't be viable for most small businesses. As such time will really show how supply chains will change in the future

this is only good for SMEC as for MNC or LCC the investment and cost is too high to move production nearer to be of any use/benefit nor justifiable against a short (~3-8 years) shortage period.

I'm the end of the day, if the cost is too high, consumers won't buy, even if it is in the shelf 😂🤣

Reshoring makes lots of sense, it will cut down carbon emissions too. The real problem is we all addicted to buying, often buying things we don't need. For example, quick fashion ending up in landfills.

The next mega-business strategy will be in the Eurasian continent regions with modernized AI and robots to do the job it is cheaper and reliable long terms. Moving to Mexico would only be very expensive because they relied on human resources dependency.

this is like how companies are hoarding supplies to raise inflation

We really been doing the same shid since the 40s

If the problem is truck driver shortage, then all the strategies mentioned wont solve the problem. As far as i know, the current "broken link" in the supply chain is between the port to store shelves. Its not between the factory to the ports

This wont work in long term. The cost will go 5 or 7times higher than before.

Indeed, if there are more people getting paid decent factory wages in a country, there will be more consumers who can purchase the very products that are being made. Workers are also consumers!!! Think about it.

In my view, rather than taking regionalization and other strategic moves, a company can think of taming the costs by allowing the place of assembly to be a point of distribution. Like in the example given, the company is tracking down the demand for shoes from nearby Bangladesh (the distribution point). These are crucial because they can lower some costs and produce sustainable reporting that is increasingly needed from impactful investors whose numbers are increasing day by day. God Willings

The COVID-19 pandemic highlighted the importance of comprehensive logistics solutions. At our company, we've been dedicated to providing top-notch services in warehousing, aviation, 3PL logistics, train logistics, ocean logistics, and more.

What's the difference between private container ships and other container ships? Why do private container ships not have any problems?

True

Brands can't just reshore/nearshore their productions based on some reports. refining an manufacturing industry takes a tons of experience and years to build it strong. This is where Asians countries comes into play.

why would anyone order something online if the product is not in a nearby warehouse which is visible in webshop page

It is a bit idealism for regionalization. The only country can do so is China at the moment, other countries can’t produce all items onshore. It took decades to produce everything onshore. When the company has diversified its supply chain, it will face quality control issue, coordinating shipping and warehousing, and still facing shortage when one supplier gets into trouble (unless all suppliers keep extra capacity to cover the shortage, which is very unlikely). The moral lesson of all supply chain problems: US government should not interfere normal business flow by imposing sanctions at wrong time ! This is a typical case of shoot yourself at the feet.

Thanks for using the right map of India.

Never in history has this happened. Never.

Could WSJ cover Houthi problem as I just left a story out of New Zealand 🇳🇿, where they are experiencing 2 week shipping delays? Thank you very much beforehand...

At the doorstep of many potential markets and with a growing shipping capability, watch Mexico rise in the next decade.

You should read Peter Ziehan's books.

Regionalization, re-shoring, near-shoring… don't tell us these will come at higher costs! It’s been challenging for companies, not only with supply chain shortages and unpredictability, but also with inflation cutting into profits, labor shortages causing lost sales, and all while trying to enable a virtual work model. It’s intriguing that even with these challenges, there’s not a lot of business news on companies using Operational Excellence to address these opportunities. That tells us that, even though Operational Excellence has been around for a long time, companies still struggle to embrace and implement these strategies at a macro scale, especially in Supply Chain and Industrial companies. I wonder, why not?

Us uk doesn’t have work force for Essential jobs. Manufacturing in us and Uk?

4:26 Soooome….. body once told me…

Aptly described...the future of supply chain will look different..

There must be a underlying incentive to this. This could also be a great strategy to deter china.

Someone enlighten me. I’m new to everything global and everything, my perspective to this is overall positive. I believe focusing on producing, manufacturing etc, near home I see it being overall positive, yes in the short term would be expensive and headaches but the long term benefits make it sweet and abundant. New infrastructure hopefully green and effective to produce income in home. The con I see to this is sadly products would get a little expensive and yes not alllll products have to be made home but most and the mostly used, but the con I see would be the product price go up and honestly as a consumer im all for it for ex new iPhone 1000 and being made home or most of it, would make it 1500-2000 for a new one I wouldn’t honestly care. Plz someone start a conversation with me, correct me and enlighten me

Circular economy is the future....?

Let’s jack up the inflation! Go America!

So what they did is realise that in order to gain the benefits of china and Bangladesh, you can go to serbia.

I wonder what effect shifting manufacturing would have on globalization and how factory workers in Asian countries will react to the lack of job security.

Capital always flows to the place with the highest profits, which is capitalism

Bangladesh represent 🇧🇩

Why not just upgrade the logistic of the port, make it comparable to modern level, so the cargo ships would not stuck at port for weeks.

Lol! It’s dumb to continue to relay on long supply chain rather than making it on the place they sell it.

Like Six Sigma, you can easily write a book with this e.g. not just about disruption to dual suppliers (common in electronic goods), MOQ or exchange rate, it can be QA + conformance to local standards that differ to your own, 2nd JIT are very sensitive to this. So before interfering with production operation or given a deadline or "stopped" for transfer, a good executive, would allow time spent on simulation run on how it could be transfer and "knowledge capture" before actual transfer. Most executives only care about cost reduction and suggest moving factories, but completely forgot about hidden cost & time to reach maximum yield (realistically), where SOP + other existing paperwork are not enough for smooth transfer, as it beyond the scope of ISO 9001.

It means that American economy looking ways to survive?

Any big pharma working on a vaccine for consumerism?

No matter what to do, companies still got the same mission: sell products at the most competitive price to maximize profit.

How can we make generic content about supply chains in the news to get clicks?

Somethings are already regionalized. Like fresh fruits and vegetables. Or big heavy items like raw steel or coal. In the end when it comes to the free market, cost and profits always win. There is no point in regionalizing items like iPhones when it comes to the end price. No one wants to pay 3x the amount for a regionalized iPhone unless they have no other choice. Also even if they wanted to, it would be near impossible to regionalize an item as complex. The machines, the knowledge and materials that make the components are far flung and often is monopolized I don't see how any of these strategies can ever work for consumer electronics. And let's be honest, even regionalized chains like fresh produce don't exist in a vacuum and is also dependent on things that are not regional

Future supply chain crises may never again be as all encompassing as this COVID pandemic. So why bother with all this mitigation? Invest in vaccines for everyone instead and let globalization continue. This is good for business, prosperity and peace.

Picture being a sailor and getting all this overtime for a ship just floating in the middle of the ocean eating for the backlog to clear out.

That's why it's not good to send our manufacturing companies in cömmünïst or dïctätor countries such as chïną, Vietnåm, thåilånd. But western companies want their cheap labor. So...

Why products becoming more expensive is just the factories and resources moving out of China to new cheap locations. And the cost is being paid by the consumers so this will slowly normalise

Bangladesh! 🇧🇩🇧🇩🇧🇩🇧🇩🇧🇩🇧🇩

hello

wow this segment was almost not complete schlock....I didn't know that was possible these days

I just bought a $40 official LA Dodgers 'official major league baseball' cap, why is it made in China, why cant they make it in America?

Amazon should build its own port and create a shipping line

Logistics on the supplies built transportation to one part dumb then back why not open one in America

1:06 🇧🇩🇧🇩🇧🇩🇧🇩🇧🇩🇧🇩 2:00 reg

I have one answer- USA. its full of boxes travelling from one olace to another and then cx returns it.🤣

Stuck at sea? more like Stuck at US PORTS!! hahahaha.

All of this points to one thing, Inflation. Inflation is here to stay

A run of the mill KZfaq channel would have done a better video?

near shoring, just what america needs

I don't feel one bit sorry for companies that laid off American worker's and moved to China, and are now having supply issues. Greed.

How's that make any sense all that running around the globe to make 1product only to send it back to those places for sale?

Everyone talking about Mexico. The US needs an investment fund to finance the construction of good highways from Texas and California to Mexico City through Monterrey and Guadalajara

Pretty low content video. Not much insight into the quantitative trade offs in these strategies or how deeply impacted the present global system is being impacted.

Every Indian watching this should dislike this video and Unsubscibe this channel. Why? Okay, I get it that they show Aksai chin in China but showing Arunachal Pradesh as different entity shouldn't be tolerated at all. This Propaganda outlet is trying to toe the Chinese line. Oh yeah, they also received money from CCP.

Fear and control

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Chinese companies have a unfair advantage in this ..... They are the world engine today ....

We need to thanks the former PRESIDENT Donald Trump for the dismal state of the supply chain😁

Let’s go Brandon

Invest in India. That's the only way the world can solve the supply chain problem.

You heard this right WSJ says Taiwan is a country

.... and in 9 months these companies will only look at profits 📈, back to normal business and quickly forget about supply chain issues and risks. 💰 🤑 💸

What if Mexico and China become rich?

I strongly oppose wsj's map showing kashmir as a seprate country from India .

So The Strands Of The Global Economic Web Have Snapped, And Everybody Retreats Back To Their Corner ? Does Not Sound Like A Recipe For Long Term Peace.