There are more than 1,000 people missing in the aftermath of the 8.9 earthquake and subsequent tsunami that struck Japan late Thursday, and the nuclear power plants in the region are on the brink of a major disaster. The earthquake was ten times stronger than the 7.6 quake that struck Taiwan in 1999, according to reports.
As the Japanese government works to fix the nuclear reactors and restore order, it has asked the major manufacturers to shut down operations until further notice so that all energy can be used for emergency purposes. This will have major implications to the global supply chain depending on how long these factories are asked to be shut down. Bloomberg has compiled a list of the major manufacturers and where they stand, which you can see at the bottom of this article.
SEE THE TOP STORIES FROM THE WDM CONTENT NETWORK
• The Trillion Dollar Race for the Eastern Seaboard
• Oracle’s Top Tips for Supplier Relationship Management
• SAP, Oracle and Accenture weigh in on Inventory Reduction
• Supply Chain Digital – March 2011
Global supply chain analysts have identified car production and semiconductors production as the two most affected areas of business in Japan.
HIS iSuppli, a major analyst firm wrote: "Suppliers are likely to encounter difficulties in getting raw materials supplied and distributed and shipping products out. This is likely to cause some disruption in semiconductor supplies from Japan during the next two weeks, based on the IHS iSuppli preliminary assessment of the situation.”
Semiconductor production in Japan is responsible for 40 percent of the world’s NAND Flash conductors and 15 percent of DRAM, which are both heavily used in consumer electronics. I wonder if this will affect lead times for Apple’s iPad 2, which has already been moved back to 2 to 3 weeks.
Many Japanese car manufacturers, including Honda, Toyota and Nissan did not see significant damage to production facilities, but the damage done to Japan’s infrastructure limits their ability to move cars and products through the supply chain.
Honda Motor Company spokeswoman Natsuno Asanuma told the AP: “There is no way to get our products out, even if we make them, with the roads and distribution system damaged.”
The tsunami struck a serious blow to Nissan in particular as more than 1,300 vehicles were destroyed at the Port of Hitachi.
Supply chain damage, According to Bloomberg:
Company Status
Sony Corp. Production halted at six plants
Toyota Motor Corp. Three group factories halted
Canon Inc. No damage affecting production reported
Nippon Restricted calls to some areas
Nissan Motor Co. Halted production at four plants; two injuries
Honda Motor Co. Halted two plants; one employee killed; about 30 injured
Toyota Boshoku Corp. Damage at plant in Miyagi
Seiko Epson Corp. Gathering information
Panasonic Corp. Assessing damage, several workers with minor injuries
Oriental Land Co. Will close Tokyo Disney Resort tomorrow for inspections
Denso Corp. Damage to plant under construction in Fukushima
Asahi Breweries Ltd. Assessing damage
Kirin Holdings Co. No major damage reported
Sapporo Holdings Ltd. Damage at Sendai and Chiba plants
Sharp Corp. Assessing damage
East Japan Railway Halted train services in Tokyo area
Tokyo Metro Co. Halted train services
Tokyo Electron Ltd. No immediate reports of damage
NTT DoCoMo Inc. Mobile-phone service disruptions
Softbank Corp. Mobile-phone service disruptions
Fuji Heavy Industries Five plants halted
As the Japanese government works to fix the nuclear reactors and restore order, it has asked the major manufacturers to shut down operations until further notice so that all energy can be used for emergency purposes. This will have major implications to the global supply chain depending on how long these factories are asked to be shut down. Bloomberg has compiled a list of the major manufacturers and where they stand, which you can see at the bottom of this article.
SEE THE TOP STORIES FROM THE WDM CONTENT NETWORK
• The Trillion Dollar Race for the Eastern Seaboard
• Oracle’s Top Tips for Supplier Relationship Management
• SAP, Oracle and Accenture weigh in on Inventory Reduction
• Supply Chain Digital – March 2011
Global supply chain analysts have identified car production and semiconductors production as the two most affected areas of business in Japan.
HIS iSuppli, a major analyst firm wrote: "Suppliers are likely to encounter difficulties in getting raw materials supplied and distributed and shipping products out. This is likely to cause some disruption in semiconductor supplies from Japan during the next two weeks, based on the IHS iSuppli preliminary assessment of the situation.”
Semiconductor production in Japan is responsible for 40 percent of the world’s NAND Flash conductors and 15 percent of DRAM, which are both heavily used in consumer electronics. I wonder if this will affect lead times for Apple’s iPad 2, which has already been moved back to 2 to 3 weeks.
Many Japanese car manufacturers, including Honda, Toyota and Nissan did not see significant damage to production facilities, but the damage done to Japan’s infrastructure limits their ability to move cars and products through the supply chain.
Honda Motor Company spokeswoman Natsuno Asanuma told the AP: “There is no way to get our products out, even if we make them, with the roads and distribution system damaged.”
The tsunami struck a serious blow to Nissan in particular as more than 1,300 vehicles were destroyed at the Port of Hitachi.
Supply chain damage, According to Bloomberg:
Company Status
Sony Corp. Production halted at six plants
Toyota Motor Corp. Three group factories halted
Canon Inc. No damage affecting production reported
Nippon Restricted calls to some areas
Nissan Motor Co. Halted production at four plants; two injuries
Honda Motor Co. Halted two plants; one employee killed; about 30 injured
Toyota Boshoku Corp. Damage at plant in Miyagi
Seiko Epson Corp. Gathering information
Panasonic Corp. Assessing damage, several workers with minor injuries
Oriental Land Co. Will close Tokyo Disney Resort tomorrow for inspections
Denso Corp. Damage to plant under construction in Fukushima
Asahi Breweries Ltd. Assessing damage
Kirin Holdings Co. No major damage reported
Sapporo Holdings Ltd. Damage at Sendai and Chiba plants
Sharp Corp. Assessing damage
East Japan Railway Halted train services in Tokyo area
Tokyo Metro Co. Halted train services
Tokyo Electron Ltd. No immediate reports of damage
NTT DoCoMo Inc. Mobile-phone service disruptions
Softbank Corp. Mobile-phone service disruptions
Fuji Heavy Industries Five plants halted
