What company made right thing before 2011 is its global diversification of operation and dispersion of global supply chains.

What company made right thing before 2011 is its global diversification of operation and dispersion of global supply chains.

In this case we can see how Honda company made its business plan prior to 2011 tsunami event and how its organized activities when impacted by not-planned disaster.

What company made right thing before 2011 is its global diversification of operation and dispersion of global supply chains.

Due to the lack of cheap labor and deficiency of raw materials, company transferred its manufacturing and facilities to different countries.  In some cases, plants were built closer to customers to economize company resources. They centralized the procurement of spare parts. Honda tried to create flexible structure of global supply chain in order to cover all global customers and attempted to defeat its global

competition.

The wrong thing was quite a scattered dispersion of its global supply chains, which resulted in chaos when tsunami happened. One component of the cars was produced in one country, another part in different country. So complexed multitude of supply chains sometimes was not effective, even costly.

Another aspect of negative impact on supply chain during disaster was cultural issue. There were language barriers within company and its multicultural branches. Only a few of staff could speak Japanese, which slowed down the right and  timely response to urgent actions in critical situation.

                                                                  References:

Chandrasekhar(2016).Honda Canada(A):Tsunami and communications. Ivey Publishing.

Alnasser,A.(December 2013)Honda supply chain. International journal of scientific and engineering research. Volume 4,issue 12.https://www.ijser.org/researchpaper/Honda-Supply-Chain.pdf