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=="Kanban" Just in Time: Interdependent Fragility of the Grocery Store Distribution System==

=="Kanban" Just in Time: Interdependent Fragility of the Grocery Store Distribution System==

The [[retail]] [[store]] chains of [[supply]] are lengthy and [[fragile]]. Most [[American]] and [[Europe]]an store [[business]] models are based on a "just in time delivery" or "JIT" or "Kanban" as the [[Japanese]] inventors called it in the [[1960s]].<ref>The [[Japan]]ese invented the "just in time delivery" or "JIT" inventory control system called "kanban" in Japanese.</ref> The JIT inventory control of the [[retail]] and [[food distribution system]] is both [[interdependent]] and [[fragile]].  

The [[retail]] [[store]] chains of [[supply]] are lengthy and fragile. Most [[American]] and [[Europe]]an store [[business]] models are based on a "just in time delivery" or "JIT" or "Kanban" as the [[Japanese]] inventors called it in the [[1960s]].<ref>The [[Japan]]ese invented the "just in time delivery" or "JIT" inventory control system called "kanban" in Japanese.</ref> The JIT inventory control of the [[retail]] and [[food distribution system]] is both interdependent and fragile.  

The world's biggest chain of stores, [[Wal-Mart]], is proof that we live in a fragile [[society]]. The kanban or "Just in Time" [[inventory]] system was developed in [[Japan]] and became popular in [[America]] starting in the 1970s. It is now ubiquitous in nearly every [[industry]]. The concept is simple: Through close coordination with subcontractors and piece part suppliers, a manufacturer can keep its parts inventory small. Kanban is a key element of lean [[manufacturing]]. Manufacturers order batches of parts only as needed, sometimes ordering as frequently as twice a week. Companies now hire Six Sigma consultants and Kaizen gurus, they buy sophisticated [[computer|data-processing]] systems, and they hire extra purchasing administrators, and these expenses actually save them [[money]] at the bottom line.

The world's biggest chain of stores, [[Wal-Mart]], is proof that we live in a fragile [[society]]. The kanban or "Just in Time" [[inventory]] system was developed in [[Japan]] and became popular in [[America]] starting in the 1970s. It is now ubiquitous in nearly every [[industry]]. The concept is simple: Through close coordination with subcontractors and piece part suppliers, a manufacturer can keep its parts inventory small. Kanban is a key element of lean [[manufacturing]]. Manufacturers order batches of parts only as needed, sometimes ordering as frequently as twice a week. Companies now hire Six Sigma consultants and Kaizen gurus, they buy sophisticated [[computer|data-processing]] systems, and they hire extra purchasing administrators, and these expenses actually save them [[money]] at the bottom line.

Just In Time inventory systems have several advantages: less [[warehouse]] space, less [[capital]] tied up in parts inventory, and less [[risk]] of parts obsolescence.

Just In Time inventory systems have several advantages: less [[warehouse]] space, less [[capital]] tied up in parts inventory, and less [[risk]] of parts obsolescence.

The downside is that lean inventories leave companies vulnerable to any disruption of [[supply]], for instance in the [[food distribution system]] or [[food production system]]. If [[transportation]] ([[UPS]], [[post office]], [[Fedex]], [[truck]]s, [[ship]]s, [[railroad]], and [[airplane]]s) gets snarled due to a [[Labor strike#Trucker Strike|trucker strike]] or bad [[weather]] or a [[disaster]], or if [[communication]]s get disrupted, or a parts vendor has a [[strike]] or a [[production]] problem, then [[assembly line]]s grind to a halt. Just one missing part means that no finished products go out the door.

The downside is that lean inventories leave companies vulnerable to any disruption of [[supply]], for instance in the [[food distribution system]] or [[food production system]]. If [[transportation]] ([[UPS]], [[post office]], Fedex, [[truck]]s, [[ship]]s, [[railroad]], and [[airplane]]s) gets snarled due to a trucker strike or bad [[weather]] or a disaster, or if [[communication]]s get disrupted, or a parts vendor has a [[strike]] or a [[production]] problem, then [[assembly line]]s grind to a halt. Just one missing part means that no finished products go out the door.

The kanban concept has also been taken up by most of America's [[retail]]ers (with [[Wal-Mart]] leading the way), most notably its grocery sellers. In the old days — say, twenty years ago — [[grocery store]]s had well-[[stock]]ed back rooms, with many extra cases of dry [[goods]]. But now in most [[store]]s the back room has been replaced with just a pallet-breakdown area. Merchandise comes in from distribution centers and it all goes immediately to the [[consumer]] shelves out front. Thus, what you see on the grocery store shelf is all that the store has on hand. What you see is what you get. The [[barcode]] [[scanner]]s at the checkout counters feed a complex reordering system. If Mrs. Jones buys three jars of [[pasta]] sauce, that could [[trigger]] a reorder for three more jars. As long as [[communication]]s and [[transportation]] work smoothly, then the entire system hums along like a [[Swiss]] watch. But what happens when the transportation [[infrastructure]] gets disrupted? [[Panic]] buying can clean out supermarket shelves in a matter of hours. The important lesson in all this is to get [[prepared]] in advance. Do not count on being able to buy anything to provide for your [[family]] on or after a [[disaster]], or worse such as [[SHTF]] or [[TEOTWAWKI]].<ref>[https://www.amazon.com/Christopher-Steiner/e/B001UO7HUG/ref=dp_byline_cont_pop_book_1 Christopher Steiner], ''20 Per Gallon: How the Inevitable Rise in the Price of Gasoline Will Change Our Lives for the Better'', https://www.amazon.com/20-Per-Gallon-Inevitable-Gasoline/dp/B0046LUJCS Accessed December 15, 2014</ref>

The kanban concept has also been taken up by most of America's [[retail]]ers (with [[Wal-Mart]] leading the way), most notably its grocery sellers. In the old days — say, twenty years ago — [[grocery store]]s had well-[[stock]]ed back rooms, with many extra cases of dry [[goods]]. But now in most [[store]]s the back room has been replaced with just a pallet-breakdown area. Merchandise comes in from distribution centers and it all goes immediately to the [[consumer]] shelves out front. Thus, what you see on the grocery store shelf is all that the store has on hand. What you see is what you get. The barcode [[scanner]]s at the checkout counters feed a complex reordering system. If Mrs. Jones buys three jars of [[pasta]] sauce, that could [[trigger]] a reorder for three more jars. As long as [[communication]]s and [[transportation]] work smoothly, then the entire system hums along like a Swiss watch. But what happens when the transportation [[infrastructure]] gets disrupted? [[Panic]] buying can clean out supermarket shelves in a matter of hours. People are therefore well-advised to get prepared in advance. Consumers may not be able to count on being able to buy anything to provide for themselves and their [[family|families]] during or after a disaster.<ref>[https://www.amazon.com/Christopher-Steiner/e/B001UO7HUG/ref=dp_byline_cont_pop_book_1 Christopher Steiner], ''20 Per Gallon: How the Inevitable Rise in the Price of Gasoline Will Change Our Lives for the Better'', https://www.amazon.com/20-Per-Gallon-Inevitable-Gasoline/dp/B0046LUJCS Accessed December 15, 2014</ref>

===Threats to the Just in Time System of Distribution===

===Threats to the Just in Time System of Distribution===

Some examples of [[threat]]s to the modern grocery store "JIT" style goods and [[food distribution system]] include:

Some examples of [[threat]]s to the modern grocery store "JIT" style goods and [[food distribution system]] include:

* [[Labor strike#Trucker Strike|Trucker strike]]

* Trucker strike

* [[Labor union]] [[strike]]

* [[Labor union]] [[strike]]

* Prices of a barrel of [[crude oil]] and hence the price of [[gasoline]] and [[diesel]]

* Prices of a barrel of [[crude oil]] and hence the price of [[gasoline]] and [[diesel]]

* '''[[Food distribution system]]:''' [[Transportation]] ([[truck]]s, [[ship]]s, [[railroad]], and [[airplane]]s), [[warehouse|warehousing]] (such as [[Amazon.com]], [[Costco]]), and [[retail]] facilities (such as [[Wal-Mart]]) which move [[food]] from the [[food production system]] to [[consumer]]s.

* '''[[Food distribution system]]:''' [[Transportation]] ([[truck]]s, [[ship]]s, [[railroad]], and [[airplane]]s), [[warehouse|warehousing]] (such as [[Amazon.com]], [[Costco]]), and [[retail]] facilities (such as [[Wal-Mart]]) which move [[food]] from the [[food production system]] to [[consumer]]s.

* '''[[Food production system]]:''' Modern industrial big [[Agriculture|Agri-business]] versus [[Permaculture]]

* '''[[Food production system]]:''' Modern industrial big [[Agriculture|Agri-business]] versus [[Permaculture]]

==External links==

==External links==

[[File:Walmart.jpg|200px|right]]

[[File:Walmart.jpg|200px|right]]

*[http://www.walmartstores.com Corporate website]

*[https://corporate.walmart.com/ Corporate website]

*[http://www.walmart.com Wal-Mart retail website]

*[http://www.samsclub.com Sam's Club website]

*[http://www.asda.co.uk ASDA website]

*[http://www.asda.co.uk ASDA website]

[[Category:Business]]

[[Category:Business]]

[[Category:Retail]]

[[Category:Retail]]