Wednesday, March 23, 2011

Infrastructure challenges pose the biggest threat to supply chain disruptions in Japan

Anecdotal evidence has been suggesting since the March 11th earthquake struck North-eastern Japan, that there would be long-felt economic and political consequences.  Our review of the various manufacturer statuses in our previous blog hinted, both overtly and subtextually, that this was a going to be the bigger challenge.

Gas shortages, rolling power black-outs, destroyed roads and rail, water outages and more are all contributing into what it appears will be a disaster-recovery cost that is much larger then anyone expected.  Many are prognosticating that the total cost will exceed Hurricane Katrina, Andrew, and the US gulf-coast oil-spill disaster combined.

The international community will obviously feel the repercussions for many weeks, months, and in some cases, even years to come.  The question is this:  what are you and your procurement team doing to mitigate what is developing into a protracted challenge to supply chain cost and delivery structures? provides a fairly clear initial financial context to judge the problem facing the region.

Part of the answer is what we like to call regional arbritrage.  PCX, Inc. over the last 17 years has cultivated many exclusive contractual relationships in regions around the world to procure product otherwise not available.  The sources include excess or overstock material from OEM, CEM, ODM and authorized distributor channels.

See our part search and try us out to see how good we are.

No comments:

Post a Comment