US Companies ramp up to fill Japanese supplier delivery issues

An article in BloombergBusinessweek (April 11-17, 2011, page 18) describes the impact of the Japanese tsunami and consequent supply disruptions. US suppliers such as Microchip Technology claim to be ready to ramp up production to meet demand, with a preference for customers who make 12 weeks of volume commitments.  Dow Chemical’s ability to produce more ingredients for plastic bottles can enable it to get share from idled Japanese chemical plants.  Food manufacturers, like Tyson and Hallmark Fisheries, expect to export more to compensate for local Japanese shortages.  How should companies manage their capabilities during the short window opportunity that Japanese shortages represent ? How should their activities during this period be structured to develop long run goodwill ? Will these sales opportunities be expected to disappear as soon as Japanese suppliers resume their production or is this a long term selling opportunity ? How might export related logistics costs increase, given the damage to Japanese ports ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Service Operations, Supply Chain Issues and tagged , , , , , , , . Bookmark the permalink.

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