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Business trends

Over 80% of Japan Inc. recast supply chains as pandemic hit: survey

Disruptions convince companies to break from conventional cost-cutting

Automobile factory employees on an assembly line in Kawasaki, Japan. Companies have begun to diversify their suppliers and boost inventory to avoid disruptions.   © Reuters

TOKYO -- More than 80% of companies with factories in Japan have begun diversifying their supply chains, a recent Nikkei survey has found, as the coronavirus pandemic and other disruptions highlight the risks posed by highly streamlined production processes.

Nikkei surveyed top executives at large Japanese companies from March 12 through Monday, receiving 141 responses.

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