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Japan Quake Disrupts Global Supply Chains

Global supply chain disruptions for thousands of multinational companies that rely on Japanese manufacturers for goods and services, as well as for sales, will be significant and last up to several months predicts Marsh Risk Consulting. Organizations need to prepare for the possibility of an extended disruption to global supply chains resulting from the earthquake and tsunami in Japan, Marsh warned today.

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.

Gary Lynch, Head of Supply Chain Risk Management at Marsh Risk Consulting, said: "Given that the immediate priorities in Japan are likely to be social not economic, the aftershocks to the global economies from this disaster may unfold very slowly; many of the economic consequences have yet to be seen. A multinational company whose supply chain could be impacted by the catastrophe should start now by assuming that its business is severely disrupted for an extended period and develop an effective mitigation strategy."

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Source: Marsh, News Release – Mar 17, 2011 


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