Panasonic’s plans to move production back to Japan

An article in the Financial Times (http://www.ft.com/intl/cms/s/0/b22e772a-e1a2-11e3-9999-00144feabdc0.html?siteedition=intl#axzz32YPzdZCV) titled “Panasonic considers bringing production back to Japan) describes the weak Japanese yen (which has fallen 20% since 2012 against other currencies) improving the economics of production of rice cookers, washing machines and air-conditioners in Japan. Panasonic sells 50% of its products in Japan and such changes make sense now. Will the move to raise capacity in Japan create an inflexible supply chain as import costs increase and currencies move again ? Are there strategic reasons to relocate to Japan, such as adapting to local regulations, which make it an effective decision ? How should Panasonic retain the flexibility of its local capacity so that it can be reconfigured when products or conditions change ?

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About aviyer2010

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

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