Honda Canada was coping with a communications and supply chain crisis after a triple disaster — an earthquake followed by a tsunami and a nuclear meltdown — that hit Japan in March 2011. Honda’s worldwide supply chain was characterized by a just-in-time, single-source approach, wherein the supplier for each component provided the best quality at the lowest price. The approach normally ensured economies of scale but now, in an abnormal time, Honda’s supply chain was vulnerable. In the short term, Honda Canada had to manage the chaos through effective communication with its stakeholders. In the long term, it had to ensure checks and balances in its supply chain. See supplemental case 9B16D005.
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