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12.11.2013
12.11.2013
Punita Gadhok (120180)
Punita Gadhok (120180)
PGDBM 2
PGDBM 2
MANAGING SERVICE AND
MANAGING SERVICE AND
MANUFACTURING OPERATIONS
MANUFACTURING OPERATIONS
GDGMSI402)
GDGMSI402)
Submitted on:
Submitted on:
Submitted by:
Submitted by:
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ACKNOWLEDGEMENT:
ACKNOWLEDGEMENT:
I would like to express my heartiest gratitude towards my project
I would like to express my heartiest gratitude towards my project
supervisor and guide Mr S Das whose support and guidance has led
supervisor and guide Mr S Das whose support and guidance has led
to the successful and timely completion of the
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TABLE OF CONTENTS
TABLE OF CONTENTS
Introduction
Introduction
04
04
Response of Nissan to the Disaster and its
Response of Nissan to the Disaster and its
Relative
Relative Costs
Costs and
and Benefits
Benefits
04
04
SWOT
SWOT Analysis
Analysis
06
06
Additional Measures as a response to the
Additional Measures as a response to the
Disaster
06
Disaster
06
Assessing the risk of Disruption in
Assessing the risk of Disruption in
Supply
Supply Chain
Chain
07
07
Product
Product Line
Line strategy
strategy
08
08
Future
Future Approach
Approach
09
09
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Introduction:
Introduction:
The case talks about natural calamities such as earthquake, tsunami etc
The case talks about natural calamities such as earthquake, tsunami etc posing a great threat to theposing a great threat to the functioning of a business and affecting its operations on a
functioning of a business and affecting its operations on a large scale. On March 11, 2011 anlarge scale. On March 11, 2011 an earthquake struck off the coast of Japan. The impact of
earthquake struck off the coast of Japan. The impact of such disaster was devastating. Thesuch disaster was devastating. The automotive industry comprising big Companies such as Toyota, Honda and
automotive industry comprising big Companies such as Toyota, Honda and Nissan were hugelyNissan were hugely impacted by the disaster. The case particularly talks
impacted by the disaster. The case particularly talks about Nissan, damage caused to the Companyabout Nissan, damage caused to the Company by the earthquake and consequently its response to the
by the earthquake and consequently its response to the disaster. Several protective measures weredisaster. Several protective measures were taken up by the Company post
taken up by the Company post the disaster to gain back the momentum of the disaster to gain back the momentum of business operations andbusiness operations and generate considerable flow of income to stabilize situations. These include sharing information with generate considerable flow of income to stabilize situations. These include sharing information with global regions, allocating supply given capacity constraints and excess dependents across national global regions, allocating supply given capacity constraints and excess dependents across national boundaries, managing production processes and making
boundaries, managing production processes and making speedy decisions without lengthy analysisspeedy decisions without lengthy analysis which consumes time. Also several operational changes were announced by the Company in 2012, which consumes time. Also several operational changes were announced by the Company in 2012, post the disaster to make the business more
post the disaster to make the business more sustainable and less prone to severe disruptions.sustainable and less prone to severe disruptions.
Response of Nissan to the Disaster and its Re
Response of Nissan to the Disaster and its Relative Costs and Benefits:
lative Costs and Benefits:
As a response to the
As a response to the disaster, the Recovery Committee (established by Nissan to coordinate globaldisaster, the Recovery Committee (established by Nissan to coordinate global recovery actions) laid emphasis on few meaningful practices such as:
recovery actions) laid emphasis on few meaningful practices such as:
Sharing informationSharing information: Since Nissan is a : Since Nissan is a globally operating Company; it ought to shareglobally operating Company; it ought to share information with their global operational
information with their global operational regions about the disaster affected situations. Non-regions about the disaster affected situations. Non-Japanese firms associated with the operations of the Company might directly or indirectly Japanese firms associated with the operations of the Company might directly or indirectly get affected by the mishap. Hence, sharing reasonable information can keep them informed get affected by the mishap. Hence, sharing reasonable information can keep them informed for the betterment of
for the betterment of their own interests. their own interests. However, there are ceHowever, there are certain limitations faced byrtain limitations faced by the Company regarding this. These include, an additional effort to
the Company regarding this. These include, an additional effort to provide information toprovide information to the concerned global regions might distract the people handling on the
the concerned global regions might distract the people handling on the ground crisis and theground crisis and the information provided could also be used selfishly for
information provided could also be used selfishly for their own personal interests. These twotheir own personal interests. These two issues were a major concern to the
issues were a major concern to the Company. Hence, to overcome these, Company decidedCompany. Hence, to overcome these, Company decided upon asking each region to send two staff members to
upon asking each region to send two staff members to Japan to gather informationJapan to gather information
concerning their interests rather than providing them unwanted information which could be concerning their interests rather than providing them unwanted information which could be later misused. Holistic approach was adopted by t
later misused. Holistic approach was adopted by t he Company in solving problems which ishe Company in solving problems which is good for the Company as a
good for the Company as a whole. This idea of sharing information led whole. This idea of sharing information led to valuableto valuable contribution from global regions instead of becoming a burden on
contribution from global regions instead of becoming a burden on the Company.the Company.
Allocating SupplyAllocating Supply: Post the disaster, several consequences were faced by the Company.: Post the disaster, several consequences were faced by the Company. Such as: capacity constraints and dependencies across the Nissan operational network. Such as: capacity constraints and dependencies across the Nissan operational network. However, allocating component parts was a critical decision for t
However, allocating component parts was a critical decision for t he Company. Allocation ofhe Company. Allocation of supplies is another important area of
supplies is another important area of aspect which is to be considered by the Company aspect which is to be considered by the Company andand seriously looked into. This determines continuity of operations and
seriously looked into. This determines continuity of operations and vigilance. The Companyvigilance. The Company particularly focussed on high margin goods for allocating supplies instead of low
Page | 5 Page | 5 goods. For example, the supply of I
goods. For example, the supply of Integrated Global Positioning System (GPS) was confinedntegrated Global Positioning System (GPS) was confined to high-end models of cars rather than
to high-end models of cars rather than low-end models. This helps in optimal low-end models. This helps in optimal utilization ofutilization of scarce resources available, enables manageable supply allocation in different regions and scarce resources available, enables manageable supply allocation in different regions and further enhances revenue generation of the Company during the time of such catastrophe. further enhances revenue generation of the Company during the time of such catastrophe.
Managing ProductionManaging Production: In such a situation, : In such a situation, the production process of any Company getsthe production process of any Company gets affected. Hence, Nissan slowed their production
affected. Hence, Nissan slowed their production upstream and downstream consideringupstream and downstream considering anticipated bottlenecks. This further saved them from costly overtime. For any Company, in anticipated bottlenecks. This further saved them from costly overtime. For any Company, in such a situation, in-stock and in-transit inventory would
such a situation, in-stock and in-transit inventory would be the first priority than be the first priority than producingproducing new goods. Hence, the Company focussed on these. The Company also used the
new goods. Hence, the Company focussed on these. The Company also used the in-transitin-transit inventory time to identify and implement supply al
inventory time to identify and implement supply al ternatives of critical components. Thisternatives of critical components. This indicates effective time management by the Company. The Management of the Company indicates effective time management by the Company. The Management of the Company could also secure air freight to
could also secure air freight to get the critical parts out of their country get the critical parts out of their country faster and reducefaster and reduce the apprehension towards in-transit stocks.
the apprehension towards in-transit stocks.
Empowering ActionEmpowering Action: The well-developed emergency response plan established : The well-developed emergency response plan established beforehandbeforehand helped the Company in ma
helped the Company in making quick decisions after tking quick decisions after the disaster. he disaster. Foreseeing situationsForeseeing situations arising from a major disaster and
arising from a major disaster and preparing well for them enabled the Company to preparing well for them enabled the Company to taketake prompt actions when the time came. Management of the Company was
prompt actions when the time came. Management of the Company was empowered toempowered to make decisions without any lengthy analysis from a central
make decisions without any lengthy analysis from a central authority. The Company alsoauthority. The Company also used flexible approach by modifying its delegation of authority to
used flexible approach by modifying its delegation of authority to speed up critical decision-speed up critical decision-making process for recovery concerns. One of these decisions includes launching the Global making process for recovery concerns. One of these decisions includes launching the Global Disaster Control Headquarters after mere 15 minutes of the disaster. The team further, Disaster Control Headquarters after mere 15 minutes of the disaster. The team further, worked upon the
worked upon the situation effectively by assessing damage while overseeing restorationsituation effectively by assessing damage while overseeing restoration efforts at various facilities. Latest information including details a
efforts at various facilities. Latest information including details about employees’ safebout employees’ safety andty and damage caused was absorbed and appropriate actions based on this
damage caused was absorbed and appropriate actions based on this were taken. Hence, thewere taken. Hence, the Company used proactive measures post the disaster situations rather than consuming time Company used proactive measures post the disaster situations rather than consuming time and delaying decisions which were indispensable. This was possible only through preparing a and delaying decisions which were indispensable. This was possible only through preparing a backup recovery plan well before the disaster, integrating tasks and taking several
backup recovery plan well before the disaster, integrating tasks and taking several imperative decisions timely.
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SWOT Analysis:
SWOT Analysis:
STRENGTHS STRENGTHS STRONG BRAND RECOGNITIONSTRONG BRAND RECOGNITION
STRONG FINASTRONG FINANCIAL NCIAL PERFORMAPERFORMANCE INNCE IN
TERMS OF INCREASING REVENUE TERMS OF INCREASING REVENUE
LEADING INNOVATORLEADING INNOVATOR
STRATEGIC STRATEGIC PARTNERSHIPPARTNERSHIPS (WITHS (WITH
RENAULT) RENAULT)
WELL-PREPARED DISASTER RECOVERYWELL-PREPARED DISASTER RECOVERY
PLAN BEFOREHAND PLAN BEFOREHAND
FLEXIBILITY IN OPERATIONSFLEXIBILITY IN OPERATIONS
EFFECTIVE STRATEGIES ADOPTED POSTEFFECTIVE STRATEGIES ADOPTED POST
DISASTER DISASTER
WEAKNESSES WEAKNESSES
RECALL OF VARIOUS MODEL CARSRECALL OF VARIOUS MODEL CARS
WEAK HOLD OF EMERGING MARKETSWEAK HOLD OF EMERGING MARKETS
LIKE INDIA LIKE INDIA
EXCESS DEPENDENCY IN EXCESS DEPENDENCY IN OVERSEASOVERSEAS
MARKETS MARKETS
OPPORTUNITIES OPPORTUNITIES
GROWING DEMAND FOR ECO FRIENDLYGROWING DEMAND FOR ECO FRIENDLY
CARS CARS
PARTNERSHIPS WITH OTHERPARTNERSHIPS WITH OTHER
COMPANIES COMPANIES
PRODUCING FUEL-EFFICIENT CARS INPRODUCING FUEL-EFFICIENT CARS IN
LIGHT OF INCREASING FUEL PRICES LIGHT OF INCREASING FUEL PRICES
THREATS THREATS
DROP IN FUEL PRICESDROP IN FUEL PRICES
GLOBAL COMPETITION PREVAILING INGLOBAL COMPETITION PREVAILING IN
THE INDUSTRY THE INDUSTRY
INCREASING COST OF RAW MATERIALSINCREASING COST OF RAW MATERIALS
NATURAL CALAMITIESNATURAL CALAMITIES
TECHNICAL GLITCHESTECHNICAL GLITCHES
HUMAN THREATSHUMAN THREATS
APPRECIATION OF YEN APPRECIATION OF YEN CURRENCYCURRENCY
DYNAMIC BUSINESS ENVIRONMENTDYNAMIC BUSINESS ENVIRONMENT
Additional
Additional Measures as a Response to the Disaster:
Measures as a Response to the Disaster:
Nissan had well developed an earthquake emergency-response plan beforehand. This is extremely Nissan had well developed an earthquake emergency-response plan beforehand. This is extremely important for any Company to
important for any Company to develop an appropriate recovery plan keeping in mind variousdevelop an appropriate recovery plan keeping in mind various unforeseen natural calamities such as earthquakes, floods, tsunami etc. Therefore, several other unforeseen natural calamities such as earthquakes, floods, tsunami etc. Therefore, several other measures which could have been undertaken by Nissan to
measures which could have been undertaken by Nissan to respond to the disaster include:respond to the disaster include:
Maintaining data centreMaintaining data centre: Data centre is nothing but : Data centre is nothing but a collection of routers, switches,a collection of routers, switches, firewalls, gateways, network and security solutions etc which helps in storing
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maintaining a physical backup of the information. Therefore, the Company should maintainTherefore, the Company should maintain a database involving all the information regarding stock details,
a database involving all the information regarding stock details, production processes,production processes, manufacturing operations, materials required, in-transit i
manufacturing operations, materials required, in-transit i nventory, employee details andnventory, employee details and other business concerned activities. This database should be kept away from the
other business concerned activities. This database should be kept away from the disasterdisaster prone area to ensure safety of criti
prone area to ensure safety of criti cal documents and vital records.cal documents and vital records.
Involvement of top management or higher level executivesInvolvement of top management or higher level executives: Top management or senior: Top management or senior level executives must actively participate in the disaster recovery planning process. They level executives must actively participate in the disaster recovery planning process. They should further be responsible towards coordinating various processes of the plan in
should further be responsible towards coordinating various processes of the plan in order toorder to ensure its effectiveness within the Company. Adequate time and resources should be
ensure its effectiveness within the Company. Adequate time and resources should be committed towards developing such a plan. Resources include both financial as well as committed towards developing such a plan. Resources include both financial as well as efforts of personnel involved.
efforts of personnel involved.
Risk assessmentRisk assessment: The recovery committee as established by the Company should : The recovery committee as established by the Company should undertakeundertake risk analysis and its
risk analysis and its impact on the business. This involves foreseeing possible disasters,impact on the business. This involves foreseeing possible disasters, including natural, technical
including natural, technical or human threats. or human threats. Every functional unit of the Every functional unit of the organization mustorganization must be analysed to determine the consequences or impact of disaster scenarios on them.
be analysed to determine the consequences or impact of disaster scenarios on them. EvenEven worst case situations such as destruction of the whole building should
worst case situations such as destruction of the whole building should be effectively plannedbe effectively planned for. Proper measures should therefore, be taken up by the
for. Proper measures should therefore, be taken up by the committee to face thesecommittee to face these
catastrophic situations by assessing the impacts or consequences and further analysing the catastrophic situations by assessing the impacts or consequences and further analysing the costs of reducing potential exposures.
costs of reducing potential exposures.
Organize and document the plan:Organize and document the plan:A formal and detailed plan should A formal and detailed plan should be prepared whichbe prepared which follows a standard format and provides for
follows a standard format and provides for detailed procedures. The plan should therefore,detailed procedures. The plan should therefore, follow a consistent format to ensure its
follow a consistent format to ensure its flexibility. It should further include detailedflexibility. It should further include detailed procedures which are to be used before, during and after
procedures which are to be used before, during and after a disaster. These detaileda disaster. These detailed procedures can be developed by defining backup alternatives. The procedures must also procedures can be developed by defining backup alternatives. The procedures must also specify methods for making changes or updating the plan in
specify methods for making changes or updating the plan in case of significant changes incase of significant changes in the system.
the system.
Test the planTest the plan: It is : It is essential to test and evaluate the plan thoroughly on essential to test and evaluate the plan thoroughly on a regular basisa regular basis (annually) before implementing it actually when the time comes. Therefore, procedures to (annually) before implementing it actually when the time comes. Therefore, procedures to test and evaluate the plan should
test and evaluate the plan should be formed and documented. Such an effort providesbe formed and documented. Such an effort provides assurance to the Company whether all the necessary steps are included in
assurance to the Company whether all the necessary steps are included in the plan or not.the plan or not. Other benefits of testing the plan include:
Other benefits of testing the plan include:
To determine the feasibility of the plan To determine the feasibility of the plan and compatibility of backup facilities within theand compatibility of backup facilities within the
Company Company
To identify or pin-point red To identify or pin-point red areas in the plan which need proareas in the plan which need proper modificationper modification
To understand the ability of the To understand the ability of the Company to recover from the disasterCompany to recover from the disaster
To motivate the personnel in maintaining or To motivate the personnel in maintaining or updating the disaster recovery planupdating the disaster recovery plan
To provide proper training to the To provide proper training to the managers or team membersmanagers or team members
Assessing the risk of disruption in Supp
Assessing the risk of disruption in Supply Chain:
ly Chain:
When a Company like Nissan is
When a Company like Nissan is extensively involved in global operations, its supply chain extensively involved in global operations, its supply chain alsoalso becomes vulnerable to several disruptions. These disruptions further hamper the smooth flow becomes vulnerable to several disruptions. These disruptions further hamper the smooth flow ofof operations in the business and disturb the
operations in the business and disturb the whole system of the organization. Such increase in thewhole system of the organization. Such increase in the risk factors of supply chain and
Page | 8 Page | 8 challenging situation as they have to operate
challenging situation as they have to operate in a more risky in a more risky business environment. Therefore, tobusiness environment. Therefore, to assess the risk of disruption following measures can be
assess the risk of disruption following measures can be taken by the Company:taken by the Company:
Identify current risk and assess itIdentify current risk and assess it: The Company must identify the : The Company must identify the risk in first place. Then itrisk in first place. Then it should quantify and prioritize the ri
should quantify and prioritize the risk and further develop a mitigation strategy to make itsk and further develop a mitigation strategy to make it less severe. Starting from the customer, the Company must gauge the impact of such risk less severe. Starting from the customer, the Company must gauge the impact of such risk ofof supply chain disruption on its
supply chain disruption on its revenue. This trail should be followed through therevenue. This trail should be followed through the manufacturing cycle to the potential
manufacturing cycle to the potential logistics constraints.logistics constraints.
Identify alternatives for supply and deliveryIdentify alternatives for supply and delivery: The Company must build collaborative: The Company must build collaborative relationships with its primary and secondary suppliers in
relationships with its primary and secondary suppliers in order to know which suppliersorder to know which suppliers serve the best alternative sources.
serve the best alternative sources.
Empower trading partnersEmpower trading partners: This can be done by instituting a collaboration platform and: This can be done by instituting a collaboration platform and designing communications framework to facilitate exchange of
designing communications framework to facilitate exchange of information between theinformation between the Company and its traders while simultaneously cutting costs and reducing potential erro Company and its traders while simultaneously cutting costs and reducing potential erro rs.rs.
Selection of vendors in Selection of vendors in differedifferent geographic regions supplying through secondary portsnt geographic regions supplying through secondary ports:: The Company must maintain a diverse profile of
The Company must maintain a diverse profile of suppliers even if equivalent parts aresuppliers even if equivalent parts are available in the same region. This will
available in the same region. This will help in case of the country experiencing disruption.help in case of the country experiencing disruption.
Complete involvement with the suppliersComplete involvement with the suppliers: The Company must engage itself in supplier: The Company must engage itself in supplier relationships. This is because the Company has to
relationships. This is because the Company has to depend excessively on its suppliers ifdepend excessively on its suppliers if disruption arises and monitor them for
disruption arises and monitor them for any potential risk or any potential risk or problems. Therefore, theproblems. Therefore, the Company must know about all ri
Company must know about all risk factors associated with the suppliers which include theirsk factors associated with the suppliers which include their financial strength, compliance with regulations, risk managing practices and political stability financial strength, compliance with regulations, risk managing practices and political stability in their r
in their respective country.espective country.
Flexibility of processesFlexibility of processes: The Company must be flexible enough in : The Company must be flexible enough in terms of its processes. Thisterms of its processes. This is because business environment is
is because business environment is dynamic; therefore every Company must dynamic; therefore every Company must constantlyconstantly adapt itself to the changes in the
adapt itself to the changes in the business environment. This helps the Company in takingbusiness environment. This helps the Company in taking prompt actions to changes with lesser impact on
prompt actions to changes with lesser impact on its operations or processes.its operations or processes.
Control of Control of logistics processeslogistics processes: The Company should not rely entirely on : The Company should not rely entirely on suppliers’ deliverysuppliers’ delivery rather bring critical components closer to home country where
rather bring critical components closer to home country where it makes economic sense andit makes economic sense and source globally only when there is an
source globally only when there is an assurance of supply.assurance of supply.
Optimization of buffer inventory or safety stock levelsOptimization of buffer inventory or safety stock levels: The Company must make sure that: The Company must make sure that it has enough supplies to keep
it has enough supplies to keep producing even if disruption arises. This is imperative for producing even if disruption arises. This is imperative for thethe continuity of business and generation of revenue for the Company.
continuity of business and generation of revenue for the Company.
Be proactiveBe proactive: : Lastly, the Company must prLastly, the Company must proactively enhance its visibility into oactively enhance its visibility into supply chainsupply chain operations to get a clear picture of flow of material as it happens.
operations to get a clear picture of flow of material as it happens.
Product Line Strategy:
Product Line Strategy:
Nissan had adopted a simplified product line
Nissan had adopted a simplified product line strategy in comparison to its rivals. strategy in comparison to its rivals. Given the capacityGiven the capacity constraints after the disaster, the Company went for
constraints after the disaster, the Company went for a build-to-stock strategy for models witha build-to-stock strategy for models with greater demand and build-to-order strategy for models with higher customization and lesser greater demand and build-to-order strategy for models with higher customization and lesser demand. Since, the disaster had affected the production process of the Company to
demand. Since, the disaster had affected the production process of the Company to a great extent;a great extent; such a strategy helped the Company to produce goods which
such a strategy helped the Company to produce goods which assured of generating revenues insteadassured of generating revenues instead of increasing its burden. The production of models with
of increasing its burden. The production of models with lower demand were confined to build-to-lower demand were confined to build-to-order strategy so as to
order strategy so as to avoid any wastage of materials, maintain efficiency of operations and avoid any wastage of materials, maintain efficiency of operations and alsoalso earn good revenues. Limited resources or affected supplies encouraged such strategies and proved earn good revenues. Limited resources or affected supplies encouraged such strategies and proved
Page | 9 Page | 9 beneficial in such crucial time for the
beneficial in such crucial time for the Company. Apart from the above mentioned benefits, theseCompany. Apart from the above mentioned benefits, these strategies further helped Nissan in simplifying its business operations and product o
strategies further helped Nissan in simplifying its business operations and product o fferings alongfferings along with substantial increase in its sales. This
with substantial increase in its sales. This was urgently required by the Company to was urgently required by the Company to boost its salesboost its sales and earn sufficient amount of revenues to enable persistent business operations without any and earn sufficient amount of revenues to enable persistent business operations without any barriers. Flow of income also improved the
barriers. Flow of income also improved the financial strength of the Company arising from such crisisfinancial strength of the Company arising from such crisis which is a major concern.
which is a major concern. Several functions such as sales, marketing and suppSeveral functions such as sales, marketing and supply chain managemently chain management were integrated to decide upon allocation of supply
were integrated to decide upon allocation of supply globally so as to generate greater revenues.globally so as to generate greater revenues. As per the case
As per the case, Nissan’s si, Nissan’s six production facilities had been damaged and ax production facilities had been damaged and a bout 50 of its criticalbout 50 of its critical suppliers were weakened. Hence, the strategies adopted definitely pulled the Company from such suppliers were weakened. Hence, the strategies adopted definitely pulled the Company from such draining scenarios as they addressed exactly the issue witnessed by Nissan.
draining scenarios as they addressed exactly the issue witnessed by Nissan. The various benefits ofThe various benefits of build-to-order strategy can be described as follows:
build-to-order strategy can be described as follows:
The biggest advantage of build-to-order strategy is to gain specializations of products manufactured. The biggest advantage of build-to-order strategy is to gain specializations of products manufactured. This occurs by manufacturing the product as per customers’ specifications and expectations.
This occurs by manufacturing the product as per customers’ specifications and expectations. This strategy eliminates unnecessary inventory from the Company by making goods which are This strategy eliminates unnecessary inventory from the Company by making goods which are actually demanded by the customers. This further gives no scope for
actually demanded by the customers. This further gives no scope for dead stock.dead stock.
Future Approach:
Future Approach:
Post the disaster, Nissan adhered to several operational changes in
Post the disaster, Nissan adhered to several operational changes in its business to face the futureits business to face the future challenges of disruption. These involve increasing the localized production of its cars in
challenges of disruption. These involve increasing the localized production of its cars in severalseveral regions of America from approx. 70% to 90% by 2015. Efforts were made by the
regions of America from approx. 70% to 90% by 2015. Efforts were made by the Company to reduceCompany to reduce dependency on Japanese-made components in its foreign factories. The Company had also put dependency on Japanese-made components in its foreign factories. The Company had also put sincere efforts to better understand the dependency of secondary suppliers apart from primary sincere efforts to better understand the dependency of secondary suppliers apart from primary suppliers within its supply chain. The
suppliers within its supply chain. The disaster taught many lessons to the Company which stimulateddisaster taught many lessons to the Company which stimulated them to adopt a modifying approach for
them to adopt a modifying approach for the betterment of the future of the Company. This ithe betterment of the future of the Company. This i ncludedncluded modification of their purchasing process particularly of critical components to enhance continuity of modification of their purchasing process particularly of critical components to enhance continuity of business and making the supply risk
business and making the supply risk concentration beyond tier 1 level less severe. Every Companyconcentration beyond tier 1 level less severe. Every Company strives to work even better next time;
strives to work even better next time; therefore, Nissan had to prepare even better to protect itselftherefore, Nissan had to prepare even better to protect itself from the next disaster struck. An actionable
from the next disaster struck. An actionable business continuity plan which comprises of all levelbusiness continuity plan which comprises of all level suppliers must be prepared as a response to any natural calamity or threat.
suppliers must be prepared as a response to any natural calamity or threat. Also developing a moreAlso developing a more effective supply chain and risk management techniques make the business more sustainable. These effective supply chain and risk management techniques make the business more sustainable. These changes, if correctly brought up and executed can clearly contribute towards a
changes, if correctly brought up and executed can clearly contribute towards a better future disasterbetter future disaster recovery plan and make the business less prone
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