When building a product in today's world, many of the parts needed are made by hundreds of manufacturers. Sometimes from around the world. Once received, these components are assembled into the product for sale. Large products like cars, trucks, and of course, Jeeps, take a whole lot of different components to make up one vehicle. Big, small, metal, plastic, electronic, it is an endless list. Most big companies today receive new parts with just-in-time ordering systems. Using tracking, such as RFID tags, a pallet of parts can be tracked, sometimes globally. However, at least when it is on a truck or in transit at trucking hubs you do not need to order more than you think you will need in the coming weeks or months. It is also a more flexible way to do business with parts since some vehicles sell well at times, but sales may drop at any time. That is a case where you do not want to get stuck with 5000 brake drums for that slow-selling model. Flexibility is necessary. Just-in-time-ordering can do that. You only order as your current supplies decreases. You might store enough for 30 or 90 days, but beyond that, you rely on incoming shipments being timed at regular intervals, and you always have an idea of where a product might be, and when it will arrive. However, sometimes this can be a problem. Especially if shipments of parts stop arriving.
Fire Causes FCA to Idle Jeep Plants
Recently, the FCA reported that one of its parts manufacturers suffered a fire and is unable to fill demands for certain parts and products. The FCA does not specify what type of parts or who makes them. Only that two important plants will be temporarily idle till new parts arrive. The two plants include one in Ontario, and one in Toledo, Ohio. The delay will idle about 57,000 workers at the plants that manufacture the Chrysler Pacifica and the Dodge Caravans. Reports say that the parts needed might be supplied by Magneti Morelli, a company that is a subsidiary of Fiat Chrysler. They did have a fire in a warehouse in Tennessee. However, the FCA has not confirmed this information. Fortunately is doesn't appear to effect Jeep models, unless they share a part with the minivans.