From “just-in-time” to “just-in-case” logistics

Summary

Marketplace Morning Report: From “Just-in-Time” to “Just-in-Case” Logistics Release Date: March 17, 2025

Hosted by David Brancaccio, this episode of the Marketplace Morning Report delves into the evolving landscape of global logistics amid increasing trade tensions and economic uncertainties. The discussion transitions from traditional "just-in-time" (JIT) strategies to a more resilient "just-in-case" (JIC) approach, reflecting businesses' need for adaptability in a volatile market.

---

1. Shifting Logistics Strategies: Just-in-Time to Just-in-Case

[00:01] David Brancaccio opens the episode by highlighting the challenges importers and exporters face due to inconsistent border tariffs. He explains that while businesses have long relied on JIT logistics to optimize efficiency, the current climate of tit-for-tat tariffs is prompting a reconsideration of this model.

[00:29] Kimberly Adams introduces the concept of JIC logistics, emphasizing its role as a backup plan to mitigate supply chain disruptions. She cites Skyler Rocky Riedel, founder of Riedel Law Firm, who defines JIC logistics as:

“We buy what we need, we store it and we use it when we need it. And we don't rely on a supply chain to get it to us immediately when we need it.”
— Skyler Rocky Riedel [00:39]

This approach involves stockpiling extra products or parts to safeguard against unforeseen events like trade wars.

---

2. Rise of Trade Credit Insurance

[00:58] David Kinzel, Senior Vice President at Marsh, discusses the surge in demand for trade credit insurance—a protective measure for businesses against customer defaults. He notes a significant uptick in this sector:

“We've already seen, I'd say, an increase in business of at least 20% so far this year, and he expects that to grow because the global trade environment is getting less and less predictable.”
— David Kinzel [01:25]

Kinzel explains that his team now dedicates about two-thirds of their efforts to these insurance products, reflecting the growing need for financial safeguards in uncertain times.

---

3. Market Dynamics and Economic Indicators

[01:40] David Brancaccio transitions to broader economic updates, featuring insights from Treasury Secretary Scott Besant. Besant remarks on the health of stock markets:

“Stock market downturns can be healthy, telling NBC's Meet the Press over the weekend that straight up euphoric markets can lead to crisis.”
— Treasury Secretary Scott Besant [01:40]

He references the S&P 500's recent correction, which has fallen by 8% from its peak after a brief rebound. Additionally, the Organization for Economic Co-operation and Development (OECD) has revised global growth projections downward from 3.3% to 3.1% due to ongoing trade friction.

---

4. Labor Market Trends: Extra Hours and Employment Shifts

In a segment focusing on labor market dynamics, Dominic Palmieri discusses the trend of full-time employees seeking additional work hours:

“People are looking for work. The biggest section that we have right now is, believe it or not, people that are employed full time that are coming to us saying I need an extra 15 to 20 hours a week.”
— Dominic Palmieri [02:42]

Palmieri highlights that many workers are balancing existing full-time jobs with extra shifts, indicating both economic pressures and the gig economy's influence on employment patterns.

---

5. Employer-Provided Childcare: Benefits and Challenges

[04:10] David Brancaccio introduces a discussion on employer-provided childcare benefits, featuring Rachel Cohen, Policy Correspondent at Vox, and Sabrina Ben Ashore, her colleague.

[04:32] Rachel Cohen poses the question of the mutual benefits for employees and employers when childcare is provided. [04:40] Sabrina Ben Ashore responds:

“For a long time, employer childcare was really seen as this sort of nice-to-have perk. Most companies didn't provide it. But that's really started to change as employers started to realize this is actually a really important thing.”
— Sabrina Ben Ashore [04:40]

Ben Ashore elaborates on the emergence of the "Tri Share" model in Michigan, where employers, the state, and employees each contribute a third to childcare costs, significantly reducing expenses for families. However, she acknowledges limitations, such as modest coverage and restricted eligibility.

[06:37] Ben Ashore also addresses concerns regarding employer-provided childcare:

“Employers are not going to necessarily be prioritizing what's best for kids. They're going to always have their bottom line as their top priority.”
— Sabrina Ben Ashore [06:37]

This raises debates about the effectiveness and equity of employer-led childcare solutions versus universal childcare models.

---

6. Future Outlook on Employer-Provided Childcare

[07:09] Sabrina Ben Ashore anticipates a continued shift towards employer involvement in childcare as companies retract remote work flexibility and workers return to office environments:

“There's definitely a shift now, especially as we are seeing more companies end their remote work flexibility. So a lot more workers are returning to the office, which is putting the question of childcare front and center.”
— Sabrina Ben Ashore [07:09]

This trend underscores the evolving relationship between work arrangements and family support systems.

---

Conclusion

This episode of the Marketplace Morning Report provides a comprehensive overview of the current challenges and adaptations in global logistics, financial risk management, market stability, and labor dynamics. The shift from just-in-time to just-in-case logistics reflects a broader need for resilience in business operations. Additionally, the discussions on trade credit insurance and employer-provided childcare highlight how companies are navigating economic uncertainties and supporting their workforce amidst changing market conditions. These insights offer valuable perspectives for businesses and individuals alike as they strategize for a more unpredictable economic future.

Transcript

[David Brancaccio]

Importers play tariff dodgeball. I'm David Brancaccio in Los Angeles. It is an edgy time for importers and exporters unclear on two key pieces of information. Is there a border tariff and how much? For decades, businesses have leaned into just in time logistics make the product in the most efficient place possible and only ship it when needed. But given tit for tat tariffs, Marketplace's Kimberly Adams looks at just in case logistics.

[Kimberly Adams]

Just in case logistics is about having a backup plan, says international trade lawyer Skyler Rocky Riedel, founder of Riedel law firm Old Fashioned.

[Skyler Rocky Riedel]

We buy what we need, we store it and we use it when we need to. And we don't rely on a supply chain to get it to us immediately when we need it.

[Kimberly Adams]

That means stockpiling extra products or parts so you're covered in the event of, oh, I don't know, a trade war. Another component of just in case logistics.

[David Kinzel]

We've seen a big increase in a product that's called trade credit insurance and that's essentially protection for customers in the event that a customer defaults.

[Kimberly Adams]

David Kinzel is a senior vice president focusing on the political risk practice at the global insurance and risk advisory firm Marsh. He says his team used to barely spend any time on these types of insurance products. Now with the trade war, it takes up about two thirds of his day.

[David Kinzel]

We've already seen, I'd say, an increase in business of at least 20% so.

[Kimberly Adams]

Far this year, and he expects that to grow because the global trade environment is getting less and less predictable. In Washington, I'm Kimberly Adams for Marketplace.

[David Brancaccio]

Treasury Secretary Scott Besant says stock market downturns can be healthy, telling NBC's Meet the Press over the weekend that straight up euphoric markets can lead to crisis. The S&P 500 stock index was in a correction down 10 from a recent peak. But after a bounce Friday, it's down 8% from that peak. S and P and Dow futures now are down 3. 10%. And there's word just now the club of industrialized countries. The OECD is cutting global growth from 3.3 to 3.1% this year due to trade friction. Starting tomorrow, the Marketplace Morning Report here brings you teachable moments from the biggest of rodeos. There are real markets at work there and I've been getting a string of tricks of the trade tips from the pros at work. Part of Rodeos Houston is quite a carnival where Dominic Palmieri has to arrange the supply chain for not so locale food systems that geared up six months ago. Here's just a taste of what this midway gourmet has to say that helps us understand the current U.S. labor market.

[Dominic Palmieri]

People are they're looking for work. The biggest section that we have right now is, believe it or not, people that are employed full time that are coming to us saying I need an extra 15 to 20 hours a week. I'll work Thursday night, Friday night, Saturday night, Sunday night. Can I come in at 6 and work to close? So these are full time employees working a job somewhere else that are looking to make a little extra money.

[David Brancaccio]

Palmieri is also responsible for the carnival serving things like a plump glazed donut on top of beef brisket. Just saying, not endorsing. Our series also includes career coaching from a rodeo clown and how a Houston hip hop legend built a burger business here this week and soon after on YouTube and beyond.

[Marketplace Newsletter]

If you want to be savvy about the economy, the Marketplace newsletter is just what you need. Every Friday you'll get explainers and analysis that make sense of everything from the moving markets to grocery prices. No jargon, no hype, just smart takes delivered to your inbox. Sign up [e-mail] subscribe.

[David Brancaccio]

Now. Let's take the Marketplace Economic Pulse checkups from a range of perspectives. There's research from the consulting firm BCC that finds just 12% of all US workers get child care benefits through their employer. Companies that offer it may have a leg up over the competition policy. Correspondent Rachel Cohen has been writing about this for Vox. She spoke to my colleague Sabrina Ben ashore.

[Rachel Cohen]

So there's obviously a big benefit to employees when their employers offer child care, but what do the employers actually gain?

[Sabrina Ben Ashore]

You know, for a long time employer childcare, it was really seen as this sort of nice to have perk. Most companies didn't provide it. I mean most companies still don't provide it. But that's really started to change as employers started to realize this is actually a really important thing. We need to get people to be able to show up at work and pay attention at work and recruit people to come to our cities and work at our companies. And that really sort of crystallized during the pandemic when all these people had to make really hard choices between do I stay home with my kid as their school is closed or do I go to my job?

[Rachel Cohen]

Yeah, there's a lot of experimentation right now as you write with different states trying different things to figure out how to make employer sponsored health care happen more. What are they trying and is it working?

[Sabrina Ben Ashore]

Yeah, a really popular one that's emerged over the last couple of years is called Tri Share in Michigan. And it's drawn a lot of attention because it just sounds simple. It targets the these workers in the middle class who otherwise aren't eligible for subsidies. The idea is that employers, the state and employees will each pay a third of the cost of childcare. The average cost for families dropped from $716 a month to $252 a month. And so that's a big difference. And we're seeing states like Kentucky and North Carolina and Indiana, they're all taking note of this Tri Share model and pushing versions of their own. The problem is that it's still really modest. It still only covers a small fraction of the people who need it. And even the eligibility for that program is relatively limited. But you are seeing many more states just thinking in terms of this try share responsibility idea that everyone kind of has a role and a stake to play in financing this benefit, this access of care.

[Rachel Cohen]

There is actually quite a bit of disagreement about whether employer provided childcare is even actually a good idea. What are the downsides or the objections people might have?

[Sabrina Ben Ashore]

Employers are not going to necessarily be prioritizing what's best for kids. They're going to always have their bottom line as their top priority. There's also, I would say, just a real concern that this could create more of a divide between people who have access to certain things and people who don't. And so there's fear that it moves further away from the idea of universal child care.

[Rachel Cohen]

Having reported on this, I mean, if you had to guess, if 10 years from now we're going to see more employers providing childcare, what would you guess?

[Sabrina Ben Ashore]

There's definitely a shift now, especially as we are seeing more companies end their remote work flexibility. So a lot more workers are returning to the office, which is putting the question of childcare front and center.

[Rachel Cohen]

Rachel Cohen is a policy correspondent at Vox. Her reporting on employer provided child care is at Vox and well worth a read. Rachel, thank you so much.

[Sabrina Ben Ashore]

Thank you so much for having me.

[David Brancaccio]

And in Los Angeles, I'm David Brancaccio. You're listening to the Marketplace Morning report from APM American Public Media.

[Janelie Espinal]

Consumer confidence had its sharpest monthly decline since 2021, which means we're all in our feels about money. And while uncertainty is the only constant these days, it's also a great reason to get serious about understanding personal finance. I'm Janelie Espinal, host of Financially Inclined, a podcast from Marketplace that makes learning about money simple. Learn about practical skills like negotiating job offers, dealing with money and friendship and love, entrepreneurship and student loans. Get serious about your money and build a life you've always dreamed of. Listen to financially inclined wherever you get your podcasts.