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40% of firms have reformed supply chains or plan to NHK

A survey indicates that around 40 percent of Japan's major companies have reformed their supply chains or are planning to do so.

The moves are in response to supply shocks caused by the coronavirus pandemic and other geopolitical risks.

The poll by NHK covered 100 firms and was conducted from December 23 to January 13.

Thirty companies said they had already implemented changes. Twelve had plans to do so.

Twenty-eight companies indicated on the multiple-choice questionnaire that their goal was to diversify their supply arrangements.

Twenty-one firms said they wanted to build their supply chains in reliable countries and territories. Eleven said they built up inventories. Eight companies expanded their domestic suppliers.

The survey asked the respondents to describe their risks and challenges. Some said prioritizing stable supplies entailed higher costs. Others said they needed to train engineers at domestic factories to partially re-locate production lines to Japan.

The survey found that many Japanese firms that depend on imported raw materials and production by overseas firms are struggling to respond to the global supply crunch.
Summary
40% of major Japanese companies are reforming or planning to reform their supply chains due to pandemic and geopolitical risks. Changes include diversifying suppliers, building reliable supply chains, increasing inventories, expanding domestic suppliers, and facing challenges like higher costs and
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ID: 847f61b3-3769-46ec-96c0-6dc83f6b2a8e

Category ID: nhk

URL: https://www3.nhk.or.jp/nhkworld/en/news/20230130_15/

Date: Jan. 30, 2023

Created: 2023/01/30 13:01

Updated: 2025/12/09 08:07

Last Read: 2023/01/30 13:11