Relocation of headquarters, government offices, and universities will boost Japan's earthquake recovery efforts
Posted: Tue Jul 01, 2025 9:53 am
When considering the phenomenon of supply chain centralization, it is necessary to distinguish between at least two types of supply chains. One is the independent supply chain. The other is the collaborative supply chain. In principle, there is one more type of supply chain: the vertically integrated type. The vertically integrated type is one in which the supply chain is completed within a single company.
This vertical integration model has been eliminated in both the remove background image automobile and electronics industries. IBM once created a vertically integrated supply chain for large mainframes. The company also initially used a vertically integrated supply chain for the production of personal computers, but outsourcing progressed with core integrated circuits being made by Intel, core operating systems by Microsoft, and memory being made by Japanese manufacturers.
As a result, a non-integrated supply chain was created. Henry Ford also created a vertically integrated supply chain in the early days of the automobile industry. He produced steel, the main raw material, in-house, and at one point even integrated an iron ore mining business.
The recent earthquake has dealt a blow to the Japanese economy, with the problem of supplying parts for industrial products. Every time an earthquake occurs, the need for decentralization of parts supply is called for, but instead, centralization advances. Why is this? We will examine the structure of the supply chain.
This vertical integration model has been eliminated in both the remove background image automobile and electronics industries. IBM once created a vertically integrated supply chain for large mainframes. The company also initially used a vertically integrated supply chain for the production of personal computers, but outsourcing progressed with core integrated circuits being made by Intel, core operating systems by Microsoft, and memory being made by Japanese manufacturers.
As a result, a non-integrated supply chain was created. Henry Ford also created a vertically integrated supply chain in the early days of the automobile industry. He produced steel, the main raw material, in-house, and at one point even integrated an iron ore mining business.
The recent earthquake has dealt a blow to the Japanese economy, with the problem of supplying parts for industrial products. Every time an earthquake occurs, the need for decentralization of parts supply is called for, but instead, centralization advances. Why is this? We will examine the structure of the supply chain.