The UPS strike: Lessons for Just-in-Timers

Inventory reduction associated with Just-in-Time (JIT) increases reliance on all members of the supply chain, particularly the distribution and transportation functions. This dependence is being increasingly compounded by heavy use of unionized rapid delivery firms such as United Parcel Service to make time-sensitive shipments. The threat of strikes against these unionized parties introduces a highly unpredictable and potentially devastating factor that is greatly incongruent with the prerequisites for JIT. The August strike by the Teamsters Union against UPS exposed numerous fallacies and pitfalls that should be carefully weighted when implementing JIT in the presence of labor unrest at an external point in the supply chain.