On March 11, 2011, a tsunami off the coast of Japan caused human tragedy on a massive scale, killing thousands and rendering more than half a million homeless. The tsunami also wreaked havoc on business supply chains worldwide. Toyota and Honda experienced a 30-percent and 60-percent decline in profit, respectively, which both attributed to production lags caused by limited supplies of parts after the tsunami. The tsunami caused an estimated $40bn in economic losses due to interruptions in global supply chains.

After working from 2007 to 2011 to transform its own supply chain, Celestica took what it learned to the market, offering managed supply chain services that complement its contract manufacturing business. Erwin Hermans, vice president of supply chain solutions, explains Celestica's strategy.