Nissan: Recovering Supply Chain Operations
(4 pages of text)
Case (Pub Mat)
Nissan's resilience strategy had been considered an exemplary response to the triple disaster in Japan in March 2011. The Japanese automobile industry made their respective recovery efforts to resume production and delivery of vehicles after suffering damage from an earthquake, tsunami, and a nuclear crisis, but it took months before they could reach pre-disaster levels of operations. Nissan's resilience practices and supply chain disruption management were acknowledged as superior to those of their peers and were appreciated by experts and analysts. Nonetheless, it took Nissan more than a month to resume production, and each day of lost production cost Nissan $25 million.
The case can be used in graduate-level business courses in supply-chain management, operations management, and strategic management. It can also be used in a post-graduate course on risk management. The case provides an opportunity for students to
- understand the concept of supply-chain resilience;
- identify potential disruptions in a global supply-chain network;
- analyze the best design-disruption fit in a supply chain;
- understand operations strategies to manage supply-chain disruptions;
- formulate improvement strategies for building robustness;
- and understand reconciliation of supply-chain capabilities with vulnerabilities.
Japan, Large, 2011
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