Japan disaster shows manufacturers' vulnerability to disruptions in their supply routes

The recent devastating earthquake and tsunami in Japan have exposed a problem with how multinational companies do business. The system they use to keep supplies rolling in is lean and cost-effective — yet vulnerable to sudden shocks, reports The Associated Press.

"When you're running incredibly lean and you're going global, you become very vulnerable to supply disruptions," says Stanley Fawcett, a professor of global supply chain management at Brigham Young University.