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The Supply Chain Rallies Following Quake

Many of the early reports from supply chain companies following Friday's record-breaking earthquake were that “our people are safe.” There will no doubt be major repercussions felt throughout the supply chain, but in the interim, companies are rallying around relief efforts.

On Monday, Molex Inc. reported that its employees in Japan were safe and that none of its three facilities were damaged in the massive earthquake that struck Japan on March 11. Molex has major operations in Shizouka, Kagoshima, and Yamato City, none of which are in the northeastern part of the country that was hardest hit by the earthquake and tsunami.

“Our first priority has been to make certain that our people were safe,” said Martin P. Slark, Molex's vice chairman and chief executive officer, in a press release. “None of our manufacturing operations were damaged and are operating normally today. However, we know that some of our customers and suppliers were not as fortunate and our thoughts are with them and all of the people of Japan as they deal with one of the worst disasters in Japan’s history.

“With the situation also evolving rapidly in regard to transportation and infrastructure issues, we do not yet know what the effect will be on Molex’s business. As we work to assess how this will affect Molex, our business continuity teams are working to ensure we continue to supply customers,” he said.

Other high-tech companies have issued press releases announcing their response to the earthquake. Here are some examples:

  • Novellus Systems is committing $1 million in relief aid to the victims and families of Friday's earthquake and tsunami in Sendai, Japan.
  • The Kyocera Group today announced that it will donate 100 million yen (US$1.22 million) for relief aid and reconstruction to the people and communities affected by the recent earthquake and tsunami in northeastern Japan. The Kyocera Group would like to take this opportunity to offer our heartfelt condolences to the people affected and to offer our sincere wishes for their recovery.

  • Mitsubishi Electric Corp. will donate a total of 500 million yen to aid and support victims affected by the Tohoku Pacific Earthquake that struck on March 11, 2011.

    Taking into account the needs of the areas that were affected, the Mitsubishi Electric Group will also coordinate a matching gift program, through which the company will match contributions to donations made by employees worldwide. Mitsubishi will also consider donations of company products and other goods.

    The Mitsubishi Electric Group expresses its deepest sympathies for those affected by the disaster and sincerely hopes for a quick recovery.

  • Advantest Corp. announced that it will donate 100 million yen (approximately US$1.2 million) for emergency aid to the victims of the Northeast Japan Earthquake of March 11, 2011, and for reconstruction in the affected area. Advantest extends its sincere condolences to the survivors and the families of those who lost their lives in the earthquake.

Let us know how your company is responding to the earthquake on our message boards, or write to us at .

6 comments on “The Supply Chain Rallies Following Quake

  1. Taimoor Zubar
    March 14, 2011

    It's great to see that companies are coming forward and fulfilling their social responsibility by donating towards the cause. Besides the donations by these companies, I feel that other companies should also help out their affected trading partners who had businesses in the quake zone. If they had suppliers belonging to that zone, they can make advanced payments to them so that they have capital to repair the facilities and resume operations. For the affected customers, they can allow them leverage in payment period and payment terms to help them recover the losses.

  2. DataCrunch
    March 14, 2011

    Japan is probably the best country in terms of preparedness for natural disasters, specifically earthquakes, considering the amount they go through.  Some quick stats: Japan has more active volcanoes than anywhere else in the world with approximately 10% of all volcanoes and Japan experiences around 1,000 earthquakes a year at a level that can be felt.   Even with all their experience in natural disasters, unfortunately some disasters cannot be avoided.  The tragedy in Japan may make companies and governments realize more than ever the need for contingency plans and operations, especially within the supply chain network.     

  3. jbond
    March 14, 2011

    It's nice to know that even with all the emergency plans in place for natural disasters that the Japanese people are doing their part to help the victims and the country get back on its feet. Many suppliers and major companies were spared major damage due to their location. This helps the supply chain infrastructure. It seems like right now a large problem that everybody could face is a nuclear disaster. If the power plant has a total failure, this could drastically affect the rebuilding process.

  4. SunitaT
    March 14, 2011

    Barbara,

      The destruction caused by earthquake/Tsunami in Japan is pretty huge. I am sure all these contributions from these companies will help the Japanese people a lot at this point in time.

  5. eemom
    March 15, 2011

    It is heartwarming to see companies “unite” in giving much needed help and support.  People uniting to aid the recovery effort is also nice to see and probably somewhat expected.  The news today out of Japan remains scary with a potential meltdown of the nuclear reactor.  I believe this is their number one priority to contain in order to avoid added devastation.

  6. Ms. Daisy
    March 15, 2011

    Unfortunately the melt down of the nuclear plants and the radiation leaks pose a serious threat to lifes and the supply chain. The loss of power will eventually affect production even with companies that are geographically removed from the eathquake. The imapct on human capital, both short term and long term is really unimaginable. It also spells doom for the entire globe, financially.

    Our hearts and prayers goes to the people of Japan. More companies and nations will have to rally round Japan to help it figure out the enormity of the disaster and how to recover from it.

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