Japan – Global Supply Chain Problems

The catastrophe which befell Japan on March 11 is shocking. One of the most significant events of our lifetimes.  A massive human tragedy.  In one sense, it doesn’t matter that Japan is the third largest economy in the world. However, there are some business supply chain effects. Many Japanese manufacturers are multi-national brands e.g. Sony, Canon, Toshiba, Toyota and Nippon Steel. Market leaders and/or benchmarks in innovation and efficiency. Japanese systems have been copied worldwide – e.g. Just In Time and Lean Production. Specialised components are shipped from Japan all over the world. Distribution to UK factories (e.g. Nissan in Sunderland) takes 28 days by sea. The system is so efficient, it could mean a slow down in production in the UK factory because the Japanese factory isn’t working.  In the USA, a GM truck plant has already closed temporarily and the production of I-Phones and I-Pads will probably be affected too.  For more information, click  here.  Do you think there will be an effect on marketing also?

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