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Earthquake Disrupts Supply Chains!
Wow! It is almost difficult to believe that supply chains are so short that an earthquake in Japan would stop production of a car in the United States 10 days later.
General Motors Co. says it suspended production at its Shreveport, La., plant for the week of March 21 because of a parts shortage stemming from last week’s earthquake in Japan. Damage to parts suppliers and transportation networks in Japan have brought that country’s auto industry to a halt.
Photo by macten.
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Josephine Giaimo on March 19th, 2011 8:15 am
I’m not surprised in the least. Just-in-time inventories, global supply chains, lack of strategic planning, and the high degree of specialization of consumer products and equipment parts all work together to make such a situation inevitable. It will be interesting to see which of these factors will change to address these types of situations in the future. Slowing down or stopping production would not appear to be a long-term strategy.
Angela Shupe on March 21st, 2011 9:17 am
I am not surprised. I remember some time back when some sort of natural disaster in another country caused a shortage of grapes at my favorite grocery store. They had put out a sign where the grapes would usually be to let customers know. It shows just how connected our world is through business.
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