Japanese factories in post-tsunami rethink: (Monday, March 5th)

Smaller unheard-of factories on Japan’s tsunami-hit northeast coast were greatly damaged last year; initially they didn’t predict that it would cause the havoc that it did. This experience has quickly forced the big companies to re-think their production and supplier plans.

Thousands of workshops for companies like: Sony, Toyota, and Murata Manufacturing etc. were damaged by the quake or by flooding on March 11 last year.  It was not long after that shockwaves began to ripple throughout the country and around the world when the small subcontractors that supply -international -famous automotive and electronics brands were unable to operate.

Renesas Electronics was one of these companies along the damaged coast that provided Toyota with parts, and it was very slow to get things back under stable control.

Now in order to avoid these risks in the future and offer stability to consumers; these big companies are diversifying their suppliers and trying to get to know just how far their supply will take them if another disaster occurs.

I think it is a smart move because the trends of natural disaster, especially earthquakes, are bound to happen again.  This shows the resiliency of these Japanese businesses, to keep their companies competitive.

~Chet Matsuura

http://www.taipeitimes.com/News/biz/archives/2012/03/05/2003527003/1