Friday May 25, 2012

JAPAN NEWS AND DISCUSSION

Thai floods ripple through global supply chain, hitting Japan hard

Business Nov. 19, 2011 - 03:55PM JST ( 13 )

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Thailand's worst floods in decades may gradually be subsiding but ripples will be felt by consumers for months to come

A view of a Honda factory surrounded by floodwaters in the industrial zone of Thailand's ancient capital Ayutthaya

By late October more than 400 Japanese companies suspended operations or lowered output due to the Thai floods

Thai people commute through floodwaters in Bangkok on Friday

A Thai woman walks through floodwaters in Bangkok on Friday

A Thai couple sits in front of an ATM machine in Bangkok on Friday

A vehicle drives past a garbage pile in a road in Bangkok following the floods

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13 Comments

-3

some14someNov. 19, 2011 - 04:47PM JST

A short message for Japanese Companies : "You can't escape Your Destiny, period"
-1

CrickyNov. 19, 2011 - 05:56PM JST

What happened to the thousands of workers who were going to come to Nippon to work?
0

Blair HerronNov. 19, 2011 - 07:47PM JST

Cricky,

7 Thai employees have come to Japan yesterday.

<http://www.news24.jp/articles/2011/11/18/06194726.html# >
0

wanderlustNov. 19, 2011 - 08:24PM JST

Maybe the transnational corporations will start to review their out-sourced, minimal stock, just-in-time manufacturing systems. Quake in Japan slows car manufacturing around the world, floods in Thailand create (apparently) a shortage of hard disc drives around the world; disasters in China, Mexico, Dominican Republic, Vietnam, Indonesia, Puerto Rico, and the other cheap manufacturing centres of the world could cause shortages of drugs, clothes, materials, consumer products, etc..

But if measures to minimise this eat into their profits, they are not going to risk 'the bottom line.'
6

Jose FrijoleroNov. 19, 2011 - 09:58PM JST

Japan needs a break.. tsunamis, earthquakes, radiation..... enough already
-3

ReformedBasherNov. 19, 2011 - 10:26PM JST

@wanderlust

They're in it for profit. Problem is they all end up imitating each other because they worry about losing any advantage. Japan and elsewhere are caught in a vicious circle of over competition. Consumers suffer from quality taking second place to price. If this reverses, Japan has a lot going for it if it can get over these natural disasters but as things stand, it's pretty grim for everyone due to how intertwined things are.
2

tosanochangNov. 19, 2011 - 10:41PM JST

****Please do not make any donation via Thai's Government sector, because they will corrupted such money. And they's not sincerely to help the victims like Japan. If you want to donated please make it via Thai Red Cross or The King's Foundation much safer. And for the Japanese investor, please feel free to evacuate your business from Thailand, because no one can guaranty you that's not gonna happen again next year onrward.
-1

CrickyNov. 19, 2011 - 11:12PM JST

Did they pass the "special" law to allow these 7 workers to enter this magical realm.
0

T_rexmaxytimeNov. 20, 2011 - 02:29AM JST

Bad year for old-Japan. I say old because a new system is about to be formed!
0

globalwatcherNov. 20, 2011 - 05:52AM JST

Thai disaster raises questions as to how well companies understand their supply networks for essential parts, and whether risks could be better managed.

LOL, For some reason, Japanese management never understands a basic risk management. You never put whole dozen eggs in one basket. American management is pretty good at this and stays very flexible in global economy.
0

lostrune2Nov. 20, 2011 - 09:50PM JST

Soon, the hard drives will cost more than the computer they're in. There's not going to be deep discounts on computers this holiday season because manufacturers can't afford it. Right now, computers are as low as they'll gonna get, as prices are expected to rise next year.
-1

Hide SuzukiNov. 21, 2011 - 06:12AM JST

@globalwatcher "American management is pretty good at this and stays very flexible in global economy." Too bad, that doesn't lead to better quality vehicles :)
0

globalwatcherNov. 21, 2011 - 12:22PM JST

Too bad, that doesn't lead to better quality vehicles :)

I agree. But we are not talking about quality issue here. It is not relevant. In general Japanese are poor at a risk management. A good example is a TEPCOmanagement how they have been handling Fukushma.

Here in US, management teams are always required to update this risk management skill. It is in us. Do you do that in Japan?