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Kremer, Mirko Archives - Ideas for Leaders

Supply Chain Risk: Diversification Vs Under-diversification

In 1997, a fire at the only Toyota supplier providing the carmaker with P-valves inspired a change of policy: from then on Toyota would dual-source every part. By 2000, however, Toyota, citing the economies of scale possible through single sourcing, once again consolidated its supply chain. Companies that experience a significant disruption in their supply […]

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