Supply Chain Management: Earthquake in Japan effect on China’s product supply chain

Although the 9.0-magnitude earthquake in Japan occurred 3 weeks ago, its effect on the global product supply chain and especially China’s just starts to become larger and larger. According to the Camera Market Price Research by Hexu Technology, the Japanese cameras’ prices had increased at least 5% after the earthquake. Another article reported by China Daily shows China’s auto market reduction by the earthquake. It caused huge effect on China’s product supply chain, which is because Japan plays an important role in Chinese products, and China did not detect such huge influence will happen. In my opinion, to strengthen China’s risk management in supply chain, owners should improve risk forecasting and issue management in supply chain’s information system. Also, Chinese owners should design another distribution and transportation system for emergence situations. And in case, it is always good for owners to save some storage.

Resources: China Daily | “Camera price increase in China by Japanese earthquake.” (日本地震导致厂商受损国内相机价格上涨。)Hexun net. Hexun information technology company, 30 Mar. 2011. Web. 1 Apr. 2011.

Dandan M.

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