The earthquake, tsunami and nuclear plant trifecta that devastated Japan has had a negative impact also on companies that embraced the concept of managing a lean supply chain – one that minimizes inventories at each stage. If news accounts are to be believed, there seem to be legions regretting that decision as disruptions caused by the disasters have a ripple impact, hampering manufacturers’ ability to deliver goods worldwide. But although current events are a wake-up call highlighting the risks inherent in a lean supply chain approach, a worse danger is that some companies may overreact, especially those where blame for bad outcomes – not bad decisions – are the focal point of damaging reviews and assessments.
Topics: Performance Management, Sales Performance, Supply Chain Performance, Sustainability, supply chain analytics. GRC. Disaster, supply chain performance management, supply chain visibility, IT Performance, Operational Performance, Business Analytics, Business Collaboration, Business Intelligence, Business Performance, Customer & Contact Center, Financial Performance, Governance, Risk & Compliance (GRC), Workforce Performance, Supply Chain