BitBytes: Reacting quickly to unexpected events
Interesting bits and bytes about logistics
Awareness and flexibility can change the game.
The ability to react quickly to the unexpected is probably more valuable than trying to forecast the future.
In 2000, a small fire at a microchip fabrication plant in New Mexico was one such event. Although the fire was small in nature, particles from the smoke polluted the entire plant destroying it's ability to operate for many months. As it was a plant specialising in a particular chip used in cellphones, the impact was global.
One customer - Nokia - immediately recognised the implications and made alternative arrangements due to high-level management involvement and very flexible operational systems. Another customer - Ericsson - did not appreciate the magnitude of the problem and did not react quickly enough. They lost a significant amount of production, were unable to meet demand for a new series of phones they were planning to launch and as a consequence, posted a huge financial loss.
Ultimately, they stepped back from the mobile handset business and merged their interests with Sony. Nokia now dominates the market.
Operational awareness, flexible systems and collaborative communication were the key differences in reactions to the unexpected.