Risk of Higher Costs and Supply Disruptions Due to Dysfunction of Logistics and Other Infrastructure
First written in FY2021. 3 of 8 entries say "Materialised", first in FY2022-Q1. Latest entry: FY2024.
The whole theme swung hardest in 2021: 3 of 10 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「The chronic labor shortage in the logistics industry is expected to raise logistics costs in the future and is already affecting the Group's financial position and operating results. However, the Group has established a specialist department responsible for logistics and is advancing logistics optimization. Based on these measures, it assesses the likelihood of occurrence as low and the impact as medium.」
While recognizing the impact of higher logistics costs, the Company assesses the likelihood of occurrence as low and the impact as medium following logistics optimization by a specialist department. - FY2023-Q3MitigatedAnnual report
「Meanwhile, the Chinese subsidiary, which overcame Shanghai's citywide lockdown by building its own logistics network, further increased shipments within China, substantially raising sales and earnings.」
The Company describes its track record in responding to logistics constraints by building its own logistics network during Shanghai's citywide lockdown and continuing and expanding shipments within China. - FY2023-Q2MitigatedAnnual report
「Shanghai also experienced a citywide lockdown lasting 2 months from April to June. However, the Chinese subsidiary was able to secure logistics and continue supplying green coffee beans within China, which drove growth in its operating results and boosted earnings.」
Even during Shanghai's 2-month citywide lockdown, the Company secured logistics and continued supplying green coffee beans within China, thereby responding to logistics constraints. - FY2022MaterialisedAnnual report
「Gross profit in the Food segment fell 3.3% year on year to ¥2,813 million, due to higher freight and other costs associated with higher origin prices, the container shortage, higher crude oil prices and the weaker yen.」
Logistics infrastructure constraints, including the container shortage and higher sea transportation costs, actually emerged as a decline in gross profit in the Food segment through higher freight costs. - FY2022-Q3RestatedAnnual report
「The worldwide container shortage and disruption to sea transportation are continuing, so we are working to obtain advance information to avoid stockouts and are implementing more detailed inventory and logistics management.」
The Company states that the container shortage and disruption to sea transportation are continuing, and that it is continuing to obtain advance information and strengthen inventory and logistics management to avoid stockouts. - FY2022-Q2MaterialisedAnnual report
「Although exports of food ingredients for commercial use to parts of Southeast Asia declined as restaurants were forced to close amid the spread of COVID-19, due to a worldwide container shortage,」
The worldwide container shortage affected actual export activity and became a factor behind the decline in exports of food ingredients for commercial use to parts of Southeast Asia. - FY2022-Q1MaterialisedAnnual report
「Concerns over supply caused by declining international port logistics capacity led the market to rise to the ¥154–155 cent level by early May.」
The decline in port logistics capacity materialized as supply concerns and became a factor driving higher coffee prices. - FY2021First statedAnnual report
「The chronic labor shortage in the logistics industry is expected to raise logistics costs in the future and is already affecting the Group's financial position and operating results.」
Failures in logistics infrastructure, including trade, storage and transportation, were organized for the first time as a standalone risk, and the Company states that higher logistics costs are already affecting its financial position and operating results. Optimization through a specialist logistics department is under way.