Friday’s devastating earthquake and tsunami will have broad economic implications.
For instance, The Detroit News is reporting that Japan's leading automakers are suspending production at their domestic plants on Monday as they assess the condition of their factories and parts suppliers.
Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co.have suffered damage at more than a dozen plants and facilities.
Toyota says that it is now conducting a detailed survey of each plant to determine the extent of any damage. The company is also assessing the situation at our suppliers, dealers and the impact on North American import vehicles.
Updates from Nissan are available here.
We’re likely to see shutdowns in the high tech and semiconductor manufacturing industry –and others --as well.
As Jason Busch points out at Spend Matters, collaboration with your suppliers is critical in situations like this. There is no substitute for communication. Failures in your supplier network can impact your company’s competitiveness –and even its long-term viability –so you need to create a plan that is based on the strategic information shared in a robust collaboration.
And as Jason so artfully reminds us, these relationships are about more than economics:
Put friendships and relationships with supplier personnel first -- factories can be rebuilt, facilities can be overhauled, ports can be brought back online. Human lives and the spirit of connection are temporal. We must all remember that relationships need to come first -- not the bottom line.