http://www.latimes.com/business/la-fi-quake-supply-chain-20110406,0,5806342.story
The above article is discussing the problem, recently intensified due to the Japan earthquake, of corporate reliance on supply chains that are thousands of miles away. In addition to the terrible tragedies and nuclear problems that have been caused by the earthquake, Japanese silicon wafer suppliers have also been affected. In Japan one company, Shin-Etsu, produces 20% of the worlds silicon wafers, a key component in semiconductors. The impact of the earthquake on this industry could effect the car, phone, and computer industries directly in the US.
The problems arise when corporations are so reliant on one channel of supply, especially when dealing with highly complicated and technical components. In terms of marketing, these companies, especially car companies, are going to have to play down the impact of the earthquake on their supply. Cars such as the Toyota Prius are expected to increase significantly over the next couple of months because of the lack of supply for the cars internal computers. What should companies do to hedge the impact of natural disaster against their suppliers? Are there any alternatives to Japan for technology manufacturing? How will the shortage affect the progress of technology over the upcoming months?
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