Nissan had a well-developed earthquake emergency-response plan.
This is extremely important for any Company to develop an appropriate recovery plan keeping in mind various unforeseen natural calamities such as earthquakes, floods, tsunami etc. Therefore, we suggest some other strategies which could have been undertaken by Nissan to respond to the disaster include:Maintaining data center: Data center is a Collection of routers, switches, firewalls, gateways, and network and security solutions in a secured storage, which assists in storing data or maintaining a physical backup of the information. Therefore, the Company should maintain a database involving all the information regarding stock details, production processes, manufacturing operations, materials required, employee details and other business concerned activities.
Written and detailed the plan: A written and detailed plan should be prepared which pursues a standard format and provides for detailed actions. The plan should further include detailed actions which give the directions before, during and after a catastrophe. These elaborated actions can be developed by defining alternatives.
The actions must also specify methods for making changes or updating the plan in case of significant changes in the system.Empower trading partners: Trading partners are the heart of organizations and helps to achieve the company’s goal. This is process that designing the institution’s collaboration platform and communications framework to facilitate exchange of information between the Company and its traders while simultaneously cutting costs and reducing potential errors.Diversified among vendors: The Company must maintain a diverse profile of suppliers even if equivalent parts are available in the same region.
This will help in case when the country facing any disruption.Complete involvement with the suppliers: The Company must engage itself in supplier relationships. This is because the Company has to depend excessively on its suppliers if disruption arises and monitor them for any potential risk or problems.
Therefore, the Company must know about all risk factors associated with the suppliers which include their financial strength, compliance with regulations, risk managing practices and political stability in their respective country.Flexibility in logistics: Flexible logistics means ability to adopt any changes in any situations with the quickest time and in lower costs. There will be changes in demand for raw materials during and after disasters. During the disasters, may be their regular transits would have major damages and need more times to deliver the inventory. So, Nissan could have created new tsunami evacuation routes and centers that took into account tsunami risks to reduce the lag times and the bottlenecks.