Global supply-chains to suffer because of Japan calamity

MNCs relying on Japan for goods & services can expect global supply-chain disruptions.

Mumbai: Organisations need to prepare for
the possibility of an extended disruption to global supply-
chains resulting from the March 11 tsunami and quake in Japan,
leading insurance broker and risk adviser Marsh said.

Thousands of multinational companies that rely on
Japanese manufacturers for goods and services, as well as for
sales, can expect significant global supply-chain disruptions
lasting up to several months, it said.

The most significant initial impact will be to the hi-
tech, steel and auto industries quickly followed by those that
depend on these industries such as medical devices,
communications gear suppliers, car dealerships, solar, ship
building, aviation and consumer electronics.

Rather than the physical destruction of the production
facilities, most of the supply-chain disruption from this
catastrophe is likely to be caused by issues associated with
infrastructure, energy, utilities, transportation and
restrictions on highway or port access, Marsh said.

Japan is the world`s third-largest economy and a leading
supplier of parts and equipment for major industries like
computers, electronics and automobiles.