Understanding the Fragility of the Global Supply Chain

(AmericanProsperity.com) – People are speaking out about the global supply chain and just how fragile it really is. With the current modern-day ability to shop online, there’s something about being able to get something at the click of a button.

Peter Goodman is the author of “How the World Ran Out of Everything” and he’s done a great job of explaining just how we’re able to get products so quickly to our doorstep.

“I hope that readers will never again look at a package landing on their doorstep in the same way,” Goodman said. “I hope that they will give a thought to all the people whose unseen labor went into bringing that thing to their door and realize that we’re asking a lot of those people.”

The global supply chain has been something that many people don’t think twice about, but during the pandemic, this all changed when people were faced with empty shelves that they’d never experienced before. Goodman says that many of these could be prevented if companies had stocked up inventory.

Says Goodman, “A lot of these shortages were fake. They’re manipulated shortages. Because when things are short in supply, the price goes up. You don’t need a PhD in economics to understand that.”

Goodman gives us a great look into the journey of a shipping container, which is carrying our products to facilities, to then wait weeks at a port struggling to find a driver for it. Many companies saw disruptions within their shipping from looking at empty warehouses to shipping containers unable to be unloaded.

The United States has dealt with global supply issues since before the pandemic, but the issues continued even after they were said to have subsided.

“By early 2023, the worst disruptions of the pandemic years had subsided. The floating traffic jams had all but disappeared, shipping rates had plunged and product shortages had eased. Yet the same foundational perils remained, awaiting an inevitable future disturbance,” Goodman wrote.
Companies have also dug themselves into a hole by adopting “just in time” manufacturing where they produce exactly enough for their demand, which continues to cause shortages that wouldn’t otherwise happen.

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