Bob FraserCFO & Macro Strategist | Data-Driven Investing Expert | Speaker & Author

COVID exposed a lot of these shortcomings and how the global system has been set up | Ben Fraser

Name: COVID exposed a lot of these shortcomings and how the global system has been set up | Ben Fraser
Uploaded: 2022-10-03T14:00:01+00:00
Duration: 51 s
Channel: Bob Fraser
Description: In this segment, Ben Fraser explains how globalization promoted practices like just-in-time inventory that, while efficient, obscured significant…

3 Oct 2022 · 1 min

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In this segment, Ben Fraser explains how globalization promoted practices like just-in-time inventory that, while efficient, obscured significant supply‑chain and energy‑price risks. He argues that these risks were historically under‑priced because they were difficult to quantify, and that the COVID‑19 pandemic acted as a stress test, exposing the shortcomings of the global system’s reliance on such tightly coordinated logistics. The discussion highlights the tension between the appeal of perfectly timed deliveries and the vulnerability introduced when unexpected disruptions occur, suggesting that the pandemic revealed a systemic underestimation of risk in global supply networks.

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It's interesting to me, it seems like this, the kind of trend that drove globalization accounted for certain factors that up to that point were difficult to quantify. Basically supply chain risk and energy price risk. And up until COVID, those kind of worked great. And in school, it's always, just-in-time inventory was such a cool concept, right? That you could have something arrive right when you needed it in all these systems. A lot of concepts that are great, right? And it worked together perfectly to get it right when you needed it there. And it's interesting how the, you know, COVID exposed a lot of these shortcomings in how the global system has been set up. And it basically really underpriced the risks