Just-in-time in doubt after deluge
Broader sourcing, inventory now key
- Published: 27 Feb 2012 at 03.19
- Newspaper section: Business
Manufacturers are diversifying parts supplies to minimise the risk of flood-related disruptions. Some are even questioning whether the widely accepted practice of lean manufacturing makes sense.
Automotive and electronics companies were especially hit hard by last year's floods, the most severe in 69 years, as they were buying from component makers concentrated in the heavily inundated provinces of Ayutthaya and Pathum Thani.
Production was disrupted not only in Thailand but also abroad, as many companies elsewhere buy parts from Thailand.
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