Supply Chains Are Breaking. Just-In-Time is Paused.

Ford has been forced to shut down production at its Louisville factory, with CEO Jim Farley calling it a “day-to-day struggle” to get hold of the right parts.

This is not a one-off event. Farley cited global sourcing challenges and rare-earth shortages tied to geopolitical tensions as root causes. It’s the clearest sign yet that the just-in-time model of manufacturing is no longer resilient enough.

The story echoes across the industrial economy. At Daimler Truck, CEO Karin Rådström confirmed the company is boosting inventory levels [AKA stockpiling] in response to recent supply shocks, including China’s tightening control over rare earth exports.

[China is on a mission to build and own the magnet industry. That is for another edition.]

At Airbus, the company confirmed over 40 aircraft are grounded awaiting engines, with delays affecting their ability to meet delivery targets. CEO Christian Scherer called the situation “a daily firefight”, but said deadlines would be met.

EY’s new global chair and CEO Janet Truncale recently said: “Uncertainty is going to be the norm. It's going to be there for some time."

Perhaps not the greatest insight you've ever heard, but true nonetheless.

What CEOs should do

The supply chain isn’t just how you move items anymore. It’s how you protect your business and grow it. CEOs must manage the supply chain as a dynamic risk system. That means moving from lean to layered and from reactive to predictive.

Easy to say. Very hard to do.

The leadership narrative

Your customers, partners and investors need to hear one thing: “We’ve rebuilt our supply chain for resilience - not just efficiency.”

That message builds trust, supports margin strength and sets a clear strategic tone. It also tells your employees that you’re preparing, not reacting.

Of course, not reacting...