Wednesday 13 April 2011

Japan and the Global Supply Chain

Last month's terrible earthquake, tsunami, and nuclear disaster in Japan caused untold human misery (and will have unknown health and social repercussions for years to come). It also ruptured the supply chain for local and global marketers, affecting their ability to acquire parts and materials and to produce goods for domestic and international consumption.

For example, Toyota's UK plants are temporarily shut because they can't get sufficient parts from Japan to continue production. Nissan and Ford have slowed or halted production at some factories, due to parts shortages. Manufacturers of other products that use Japan-made computer chips are worried about disruptions, as well.


Chip factories in Japan are working hard to bring production back to normal, but it will simply take time. As Japanese business inches towards normalcy, the economy will slowly improve and connections with the global supply chain will improve, too.