For many years, manufacturers followed a strategy known as "just-in-time" production. Instead of storing large quantities of parts in warehouses, they ordered components so that they arrived shortly before they were needed on the assembly line. This approach reduced storage costs and made it easier to spot defects quickly, because problems could not be hidden in piles of unused stock. The weakness of the strategy became clear when transport was disrupted. When a single supplier could not deliver, entire factories sometimes had to stop because there was no reserve stock to fall back on. As a result, a number of companies have begun to adopt what some analysts call a "just-in-case" approach. They keep larger inventories of critical parts and try to buy from suppliers in more than one country. This shift has its own price. Holding extra stock ties up money that could be invested elsewhere, and managing several suppliers requires more staff and more careful communication. Analysts suggest that most firms will not return fully to either extreme. Instead, they are likely to identify which parts are most at risk and hold extra stock only of those items.
Companies that have adopted the just-in-case approach have seen their profits fall.