For the longest time, Toyota’s lean supply chain approach served as the role model for other auto manufacturers. During congressional testimony this week, financial growth clouded its priorities replacing the customer satisfaction philosophy it had followed for decades. The Economist published an article today that provides an overview of the inner workings of Toyota and what went wrong. Two words sum up the rise and fall of Toyota: trust and visibility.

Back in business school, “just in time” was a concept that was drilled into me through case studies that exemplified the economic success of Japan during the 1980s. But Toyota’s current troubles highlight not the deficiencies of the concept, but weaknesses in business judgment. Western automakers tend to source in-house or follow the lowest bidder model. Toyota and many Japanese manufacturers, on the other hand, tend to work with a select group of suppliers and rely on them as a sole source of specific components....

Jason Busch of Spend Matters wrote an interesting post on his blog yesterday about Apple and its supply chain. More specifically, the story focuses on one of Apple’s manufacturing plants in Longhua, China where it’s not uncommon for security and even local police to mentally and physically intimidate reporters and anyone else who attempts to take pictures outside of the facilities entrance. Furthermore, there is an assumed special authority that the facility’s security team has to enforce laws any way they want.

Regardless of what is actually going on out there, these type of reports are somewhat disturbing and as Jason mentioned, highlight supply chain risk. I’m not sure you can assume that Apple actually knows what’s going on at its manufacturing facilities, and if they do, they don’t seem to care. Whatever the case, Apple automatically becomes accountable—guilty by association would be an understatement. Let’s assume Apple doesn’t know. They could be vilified...