Matt Bigelow

music, podcasts, and recordings from tokyo

Podcasts and self-produced music from Tokyo. AI trends from Tokyo, Asia News Analysis, Odd Japanese Items, and documenting the rising conflict in the Indo-Pacific region.

Filtering by Tag: COVID 19

Coronavirus, Supply Chains, and Value Systems

Japan recorded over 1000 cases of the novel coronavirus on July 28, 2020. The most ever. Out of a population of 125 million, you will have to excuse me if my alarm bells aren't bouncing off the walls. To those affected, I wish a speedy recovery. 

To alleviate my fear gauge levels, I have been using this website: https://toyokeizai.net/sp/visual/tko/covid19/en
It is filled with stats from the government pipeline, not spokespeople

Screenshot from toyokeizai.net

Screenshot from toyokeizai.net

So while the numbers of cases have been increasing, the serious numbers and deaths have been decreasing. Whew!
A lot of people are flipping out, and I wonder how we will meet again. It is very different from the Fukushima Nuclear Disaster of 2011, and even the Lehman Shock/Great Recession of 2008 where the culprit was identifiable. This time, it was a mysterious virus that was released from China and spread all over the world, sending everyone into worldwide panic with the immediate implementation of strange wordings: social distancing, bend the curve, zoom meetings.

This is weird, and nothing makes sense. 

But what the hell is going on with our supply chains? My noggin’s ticking.

After the Chinese Communist Party (CCP) locked down Wuhan City but let its citizens fly around the world, I discovered that Wuhan was a global distribution center for everything from car parts, cybersecurity equipment, telecom gear, EV/connected cars, aerospace and pharmaceuticals. Half of the Fortune 500 have facilities, operations or manufacturing sites within Wuhan. India imports 70% of its Active Pharmaceutical Ingredients from China. These imports are used to manufacture key medicines. 

The world's key supply chains have been bottlenecked into an area with wetmarkets and weaponized biolabs that can be shut down by a totalitarian government. 

Remember to thank your local manager.

The short-term profits were fantastic. 

McShipping! Just In Time Shipping for EVERYTHING!

In July 2020, Asia flooded. An atmospheric river dumped and dumped and dumped. And then dumped some more. India flooded. China flooded. The Three Gorges Dam, at risk of toppling under the weight of the surging waters battering its heights, released so much water that cities and towns downstream on the Yangtze flooded.

One example of a maintaining a supply chain during a flood

One example of a maintaining a supply chain during a flood

Pretty hard to keep those supply chains in check when flooded factories left without contracts after the global economy crashed during the Covid Lockdowns that caused millions of job losses in the developing world. 

American and European clothing corps usually place a lot of orders in Myanmar, Bangladesh, and countries of that order. That’s all but dried up because of the coronavirus, and now those supply chains are laying in wait, gathering dust while the workers wonder what the hell is next. Try feeding a family on 5 dollars a day and then have that resource evaporate with no promise of return except for maybe a text message to your smartphone, which mysteriously always works.

The Japanese government has announced a $500 million plan to repatriate or establish new supply chain routes outside of China and to move either into South East Asia or South Asia. I recommend South East Asia as they are more trustworthy countries with very capable supply chains. If the Philippines and Indonesia can up their infrastructure, we could see a stable supply chain network emerge.

Japanese supermarket-chain Aeon also announced a partnership with British robotics company Ocado, which is an autonomous supermarket operated almost entirely by robots. By robots, I don't mean humanoids. These robots are canisters with arms and move along a grid and prepare orders for customers placed online. 

While British robots and South East Asian networks alone may not recombobulate the supply chains bottlenecked in China, having the world's key production lines pinched on a river owned by a totalitarian regime with a growing number of human rights violations on its hands including organ harvesting and forced abortions may not be the most rewarding of structures for the consumers who are on the purchasing-end of this bizarre network of supposed efficiency. 

And generally managers don’t like a flood of blood on their hands.

To rework the supply chains, expect more automation, 5G, and humans moving into the management of robots for home delivery. You can also expect the novel coronavirus to be used as the main reason for these changes.

I run the Japan WUT? Podcast. If you like what you read here, you might want to consider listening to “the Japan WUT? Podcast”.

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