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, Sustainability, Operational Performance Management (OPM), supply chain analytics. GRC. Disaster, supply chain performance management, supply chain visibility, Business Analytics, Business Collaboration, Cloud Computing, Governance, Risk & Compliance (GRC), Business Performance Management (BPM), Financial Performance Management (FPM), IT Performance Management (ITPM), Supply Chain, Supply Chain Performance Management (SCPM)