Japan’s tsunami highlights chinks in global supply chain

The global manufacturing industry must act now to protect and prepare its supply chain matrix against a ticking time bomb of financial instability, warns a new PwC report. Global supply chains were thrown into turmoil following on from the Japanese earthquake. Xirallic, a popular pigment that gives cars a pearly shine, was manufactured at just one factory in the world, the Onahama plant near the Fukushima-Daiichi nuclear power station in Japan. The plant had to close causing some car makers to slow production or halt completely, highlighting the need for the industry to have a radical re-think about current business strategies. “With the current volatility of geopolitical, economic and financial markets, businesses need to research their risk areas and mitigate where they can in areas such as lifecycles, demand planning and skill shortages,” says the report.