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NY Times: Improved global supply chain visibility helps firms to better deal with crisis in Japan

The unfortunate disaster in Japan is serving as a major test for the global supply chain. As the world’s third largest economy, Japan produces millions of parts for the electronics, automotive and computer industries. Lots of that production is on hold following this month’s earthquake, tsunami and resulting nuclear crisis.

It’ still too early to gauge how supply chains around the world will be impacted by the ongoing crisis, but an article in the New York Times over the weekend provides some outstanding insight into how companies are dealing with potential supply shortages.

The article credits RFID and other technologies as providing much greater supply chain visibility than in previous supply chain disruptions:

From the article:

The ability to manage these complex networks, experts say, has become possible because of technology — Internet communications, RFID tags and sensors attached to valued parts, and sophisticated software for tracking and orchestrating the flow of goods worldwide.

That geographic and technological evolution, in theory, should make adapting to the disaster in Japan easier for corporate supply chains.

Click here to read the full New York Times article.

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