Japan and Ecuador Earthquakes: Supply Chain Lessons from Past Disasters

Talking Logistics

The recent earthquakes in Japan and Ecuador are a sad reminder of how deadly natural disasters can be. As of this morning, 41 people are confirmed dead in Kumamoto prefecture, the epicenter of Japan’s earthquakes, and 272 people have died in Ecuador , with thousands more injured and displaced from their homes. Our thoughts and prayers are with the people of Japan and Ecuador, especially all of the victims and their families, as they deal with the aftermath of these tragic events.

Japan and Ecuador Earthquakes Highlight Supply Chain Risks

EFT

Last week’s earthquake and strong pre and post aftershocks in Japan have resulted in numerous disruptions for manufacturers. . Toyota announced on Sunday it would suspend production in stages at its plants across Japan.

Innovative Approaches to Supply Chain Risk

Kinaxis

This scenario played out for thousands of companies after the Japan earthquake, the Thailand floods and numerous other smaller scale disasters. Efficiency programs like lean drove us to reduce suppliers and cut inventory.

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Your supply chain is costing you money – Reason #5 Not having a supply chain risk management process

Kinaxis

We saw this type of issue over the past several years with the Japan earthquake / Tsunami in and with the Thailand floods. If your demand decreases, you have excess inventory or idle capacity. by John Westerveld Reason #5: Not having a supply chain risk management process.

Your supply chain is costing you money – Reason #7 Making decisions based on bad data (supply chain data accuracy)

Kinaxis

Reason #6 Not effectively managing inventory. Having wasted time going to that store, I’d be less inclined to use that store in the future – at least I’d be much less likely to trust their website’s inventory. If the planned lead-time is longer than actual, you get excess inventories.

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5 Ways to Reduce Your Inventory the Right Way

EMERGE App

Here, we’ll start by covering what reducing your inventory means. Then we’ll summarise some inventory holding costs that you might not know about. Finally, we’ll cover 5 ways that you can take to sensibly reduce your inventory now. Set Inventory Reorder Points.

3D Printing Set to Streamline the Retail Supply Chain Through Reduced Lead Times and Inventory

BluJay Solutions

The attractiveness of 3D printing for manufacturers and retailers/distributors centers around reducing both lead times and the risks involved in holding inventory. Not sure if an electronic toy that’s very popular in Japan will hit the mark with children in the Netherlands?

Checklist for working capital management

Supply Chain Movement

Working capital management revolves around inventory, debtors and creditors. Japan. Visuals cash checklist earn x turn finance inventory inventory days raw material risk Slimstock suppliers working capital10 questions to assess working capital management.

My Vision for Supply Chain 2020? Deep Integration!

Arkieva

If I look at retailers it is still common to have private label suppliers stuffed with inventory, central or regional DC’s stuffed with inventory and shops stuffed with inventories. I was lucky to pursue a Phd in multi-echelon inventory optimization.

Two Kinds of Supply Chain Risk and How to Prepare for Them

ToolsGroup

When most people think of supply chain risk, they often think about the impact of major unforeseen “headline grabbing” events - like the tsunami in Japan impacting automotive supply chains or horse meat making its way into British beef supplies.

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L’Oréal: A Case Study in Supply Chain Excellence

Supply Chain Shaman

The award, based on beating the industry peer group on rate of improvement on the key metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC) while outperforming their peer group, is tough to achieve.

Toyota expects to halt production at some North American factories

Supply Chain Network

Toyota said it expects to halt production at some of its North American factories due to shortages of parts from Japan following the devastating earthquake. It said the facilities still are receiving parts from Japan that were “already in the pipeline” before the quake. Most part suppliers in Japan are already back up and running, but this isn’t enough to persuade the Ontario plants to kick back into full-gear.

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3 Uses of IoT Tech Spurring Sustainability in Supply Chains

Cerasis

Tire giant Pirelli has attached sensors to its inventory that allow it to see where its tires are located and get an accurate idea of how many and what kinds of new units need to be produced.

Toyota and USPS See Opportunities for Blockchain Technology in Supply Chain Management

Talking Logistics

Imagine a bitcoin being a unit of inventory and a digital wallet (“bitcoin address”) being an inventory-keeping location, such as a store, distribution center, or truck trailer.

Insights from Kinexions Tokyo 2016

Kinaxis

PSI (Production, Sales, and Inventory) analysis has been the norm in the region for quite some time. The event concluded with Mr.Toshiya Kaneko, head of Kinaxis Japan operations thanking the attendees for their presence and participation.

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This Week in Logistics News (December 9-13, 2013)

Talking Logistics

Japan Impasse Dogs Pan-Pacific Trade Talks ( Wall Street Journal ). They have engineered new strategies for jockeying inventory across the country to avoid overstocks and markdowns and to keep customers from defecting to Amazon, a big problem last year. .

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How the Supply Chain Can Thrive in the Face of Natural Disasters

Material Handling & Logistics

For example, the catastrophic Tohoku earthquake and tsunami a few years ago resulted in a massive US$210 billion in costs for Japan. Unable to import or export needed parts, Toyota, GM and Nissan all closed down their facilities temporarily in Japan and the United States.

ASIN Number and What It Means For Your Business

EMERGE App

We’ll also cover how businesses manage their inventory with other product codes. As you know, you generate SKUs for internal stock control and inventory management. Managing Inventory with Product Codes. Introduction.

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World-Renowned Lean & Kaizen Expert Mr. Takao Sakai joins ThroughPut Advisory Board

ThroughPut

While he performed technical consulting for Toyota Motor, Honda sent many of his fellow workers into the company for the purpose of establishing an automobile industry in Japan. We hope that ThroughPut’s platform ELI can one day be accessible to every operations team in the world to democratize the Just-In-Time culture, reduce excess inventory, and eliminate waste across global supply chains.” MENLO PARK , SILICON VALLEY, Calif., 3, 2018. ThroughPut Inc.,

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Good-bye siloed, functional planner. Hello storm chasing network planner.

Kinaxis

Supply chain planners (I’m lumping in all the silos, including demand, supply, inventory and capacity planning) today are dealing with challenges that were unimaginable when Lotus notes were the next big thing. 2011 – Japan earthquake / tsunami and Fukushima disaster.

Why the supply chain should be more social

The Network Effect

As a result, when tragedy strikes like an earthquake affecting Japan or flooding rains overwhelming Bangkok, automakers and electronics manufacturers are unable to identify which of the suppliers upstream in their value chain may have been impacted.

Internet of Things (IoT) in the supply chain – a jolt of creativity required?

DELMIA Quintiq

Given that it took place in Japan, I imagined quite an animated discussion around making another leap in the manufacturing of things. From the presentations, it was clear that the investment in IoT hardware, from raw material tags, inventory tags, to equipment sensors – is increasing.

Harvey’s Impact on the Global Supply Chain: The Role of Analytics

NC State SCRC

Japan will be prone to earthquakes and tsunami. Hurricane Harvey hit the Gulf Coast and Houston with driving rains that left many businesses struggling with flooding, with little advance warning.

Step Five: Stage Five Supply Chain Planning System of Record (SCP SOR)

Kinaxis

On the other hand, I have worked with a company that within a few hours after learning about the Japan earthquake and tsunami of 2011, were able to determine the impact of supplier late deliveries and very quickly find alternate sources of supply. by Carol McIntosh Forward Thinkers.

L’Oreal: A Beautiful Supply Chain

Supply Chain Shaman

Note that they are pushing progress faster than their peer group and outperforming in all areas except inventory turns. If L’Oreal had performed above the industry sub-segment for inventory turns, they would have made the list for the Supply Chains to Admire for 2014.

Top 6 Wholesale Distribution Trends for 2019

EMERGE App

In the past, Japanese brands moved their manufacturing operations from high-cost Japan to low-cost countries. Product design and marketing generally stayed in Japan. Just like the global brands that keep the design and marketing teams in Japan and the States. Introduction.

Scaling Digital Manufacturing From Pilot To Production

IQMS

Analytics for quality management and inventory optimization are the pilots most likely to progress to production rollouts. Analytics for quality management and inventory optimization are the pilots with the highest probability of progressing to production rollouts.

Logistics Trends Part 2

BluJay Solutions

Restructuring production schedules has been part of this, as well as encouraging consumers to pre-order, removing much of the risk of holding too much inventory. This is especially the case in China-Japan trade. First Trend: Yield Dilution. One of the longest term trends in the industry has been dilution of yields, which means that forwarders have to work harder to maintain their revenues. There are a number of reasons for this, including a shift in modes from air to sea.

Creating a Dynamic, Demand-Driven Supply Chain

Supply Chain Nation

Declining global sales, pressures to reduce inventories, high levels of demand variability – these are all contributing factors to the increasing complexity of the global automotive industry. Global inventory optimization.

Challenges of global fast fashion supply chains (Part IV)

Supply Chain Movement

In this series on global fashion retail we have discussed about network design and inventory location in Chapter 1, stores replenishment in Chapter 2 and sourcing and manufacturing lead times in Chapter 3. 1) Network design and inventory location. Talent development.

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Preparing the Supply Chain for the Hurricane Season

Enterra Insights

this season, an above-average year is anticipated for East Asia that could affect production of consumer electronics sourced from China and Taiwan and more advanced technology products from Japan and nearby regions.”[1] It’s essential that businesses optimize their inventory ahead of hurricanes to mitigate the effects of these factors. Organizations are often counseled to prepare for the unexpected. Even better advice is to prepare for the expected.

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Managerial Practice Will Need to Catch up with the Emergence of Real-time Supply Chains

NC State SCRC

Working capital is generally in the form of inventory, which is an asset that doesn’t produce any revenue or cash. A metaphor is that of reducing friction, which increases flow, where friction includes all of the typical delays and problems that slow material flows and increase inventory. Friction can produce bottlenecks in production systems and shipments, which delays material and causes inventory to build up or shortages to occur.

The Perfect Gift for Retailers this Christmas

BluJay Solutions

How about the Ninja Umbrella from Japan? Storing too much inventory equates high carrying costs, carrying too little inventory results in the loss of potential sales and unhappy customers. It is almost that magical time of the year where decorations abound and children excitedly open gifts from Santa Claus (also known as Dad). It is the joyous season where everyone comes together for a good bonding session and of course, enjoy the delicious Christmas dinners.

5 Ways To Improve Your Import-Export Business Now

EMERGE App

Nobody uses fax machines anymore (well, except in Japan). In Japan and South Korea, it’s the LINE messaging app. In Japan , for example, it’s best not to bring Western standards in negotiation to the table. Introduction.

Poor Supply Chain Systems will drag down your asset velocity

NC State SCRC

The original intention was to reduce inventory through multiple deliveries – and this worked well in places like Japan, where suppliers are located near the production facility. Suppliers are being asked to carry more inventory for their customers, under the guise of “vendor managed inventory” – which in turn makes them less responsive and is a financial burden on their balance sheet.

Distribution in China takes a detour

Supply Chain Movement

That leads to extra inventory and extra costs and hence necessitates a substantial level of turnover in order to be financially feasible. From there the pushchairs are shipped to local DCs in China, Japan and South Korea for crossdocking and transport to retailers.

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Myth Busting 5 Myths Regarding Industrial Facilities

Cerasis

A recent article published by the Japan Times argued that computer automation ‘isn’t a guarantee of improved production.’. That said, the research that the Japan Times is referring to is based on all industry sectors, not the industrial sector alone.