Japan and the “Just-In-Time” Supply Chain

Reuters Canada has a report on how the global use of “just-in-time” inventory management is being severely tested by the disaster in Japan:

The most immediate threat to manufacturers stems from the fact that the weakest link in the global supply chain is what Japan is best known for: high-end, highly technical parts like semiconductors, which also weigh very little.

“The earliest impact will be felt with high-cost, low-weight products,” said John Hoffecker, managing director of restructuring advisory firm AlixPartners LP. “They come out of Japan by plane so manufacturers don’t have much of a buffer for those products.”

You can read the full report here.

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