IMD-6-0333 © 2011
Cordon, Carlos; Vivanco, Luis
The quake and the corresponding tsunami and atomic catastrophe that hit north eastern Japan, Philips created a specific purpose team with total responsibility to manage a small but essential cluster of suppliers based in the affected region. The catastrophe team has been given prescriptive power over all three - and is made up from all three Philips sectors - consumer, health care and lighting of buying and supply chain management people. Its goal would be to establish the continuity of the supply of components to keep the lines running, together with to evaluate where an impact on the business is likely to happen.
Learning objectives: The case exemplifies a situation where the ordinary way of doing business and managing a supply chain was frozen due to a black swan event (an unforeseen scenario of substantial magnitude and impact). Participants are asked to evaluate further potential repercussions, to define the primary procedures that must be established if the team is going to meet its targets and operational priorities and are given an initial appraisal of the hazards and priorities of the business in such an environment.
Philips Japan (A) case study solution
Subjects: Supply chain management; Japan tsunami; Crisis management; Sole sourcing
Settings: Japan; Global ; Electronics; Lighting; Medical equipment ; 119,000 employees; €25.42 billion (2010) ; March-June 2011
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