Saturday, June 11, 2022

Just in Time vs. Just in Case

 

Pendulums swing.

I would rather come out a little behind theoretical market earnings by instead paying off a home mortgage first. There is value in preparing for the future and and I see value eliminating the ongoing mortgage payment obligation.

Can't agree with the anti-antisemitism that reportedly motivated Henry Ford, but the way he went about ensuring Ford's supply chain is something that totally resonates with me. Overboard these days? Probably, but I cant help feel there are ways.

Someone from Ford says producing the chips they need is, "not realistic."

I wonder about that statement. Why wouldn't it be realistic to partner with the Taiwanese company for a shared ownership of chip production capacity somewhere outside of Asia? Something where the chip maker gets profits and Ford ensures some ongoing supply seems obvious to me.

Business folks are big talkers about managing risk but these supply chain failures are near malpractice in my mind. I don't now how much the pendulum will swing back, but now that the risk is known it'd be business malpractice to not work to proactively invest in risk mitigation.

What happens when China invades Taiwan? How much will these basic chips cost then?

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