Supply chains are the bustling global networks between a company and its suppliers. Three key characteristics of these networks help reduce costs and waste in our modern economy: intermediate goods, just-in-time manufacturing and the “bullwhip effect.” But the coronavirus pandemic revealed that these same characteristics can contribute to shortages of goods. During the past two years, we’ve all had trouble getting our hands on one item or another, ranging from a new car or bicycle to home essentials.
Watch the video for the pros and cons of supply chains and why these networks have become a hot-button issue in recent months.
For more on supply chains in Texas, see our December-January 2022 issue of Fiscal Notes. You also can read about the importance of five industries and one international bridge in the Supply Chains Edition of the Comptroller’s recurring Good for Texas Tour.