Date Published: 
04/20/2011

The disruption caused by the triple whammy earthquake, tsunami, nuclear plant issues is leading to a number of system issues in Japan.  Power and many other logistical capabilities have been compromised.  A country with many high-tech and specialized plants throughout, Japanese firms are now having production issues related to electricity (shortages), labour, ability to get parts in, ability to run at capacity, and so on.

These issues collectively are affecting many other firms, not just Japanese firms.  While Toyota and Honda in North America have announced plant slowdowns and lower production and revenue targets, so are other firms like Harley-Davidson. 

Sony announced, that while the problems are stabilizing, it expects the next quarter impact to be worse than the previous quarter. 

Firms that make electronic devices also depend heavily on output from the Japanese electronics industries, from silicon wafers to flash memory to batteries and other products, meaning that cellphone makers and tablet makers and many other similar firms will continue to need to manage supply challenges. 

Overall, however, confidence seems to be rising that the number of products and quantities imperilled are being successfully managed downwards, even though it may be some time before Japan is back at 100% capacity. 

Risk Management Perspective: 

Supply Chain Risks and Hazard Risks can be intertwined and rapidly become ongoing Operational Risks.

Industry Group: 
Crown Corporations and Government Agencies
Industry: 
Automotive
Industry: 
Electronics
Industry: 
Information Technology
Industry: 
Other
Country: 
United States
Risk Class: 
Operational
Risk Class: 
Hazard
Risk Type: 
Geographic
Risk Type: 
Demand/Supply Change
Risk Type: 
Supply Chain Risks
Risk Type: 
Natural Disaster
Risk Type: 
Facility Unavailable

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