Reducing the White-Space
Reducing the White-Space
The 2011 Japanese quake affected many companies and illustrates the growing problem with deep-tier supply chain disruptions in which the suppliers of suppliers are affected. Chapter 3 examines GM’s handling of the Japan crisis and the management of what GM calls “white-space”—the gap in parts supply left between pre-disruption inventories in the supply chain and the post-recovery refilling of the chain. The white-space conceptual framework allows companies to estimate a value-at-risk from various types of disruptions and to prioritize prevention and preparation initiatives.
Keywords: Deep-tier supply chain, Inventory, Value-at-Risk, Time-to-Impact, Time-to-Recovery, Prevention, Allocation, GM (General Motors), Flextronics
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