Dependence on Contract Manufacturers and Quality and Supply Disruption Risk
First written in FY2023. 4 of 6 entries say "Mitigated", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2024: 10 of 32 companies on the "Worse" side.
16 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The company’s top 3 suppliers accounted for a high 83.9% of total procurement in the fiscal year ended February 2026, and the company outsources manufacturing to specific companies.」
Concentration among the top 3 suppliers declined from 87.7% in the previous fiscal year to 83.9%. Concentration remains high, but the company continues measures to reduce it by diversifying and expanding its contract manufacturing base. - FY2025MitigatedAnnual report
「The company’s top 3 suppliers accounted for a high 87.7% of total procurement in the fiscal year ended February 2025, and the company outsources manufacturing to specific companies. It works to ensure a stable product supply by maintaining good relationships with its contract manufacturers. It is also working to mitigate unforeseen risks arising from dependence on specific contract manufacturers, including by diversifying manufacturing sites and expanding the use of other contract manufacturers.」
Although concentration among the top 3 suppliers remains high, it declined from 88.7% to 87.7%, and the company continues measures to reduce it by diversifying and expanding its contract manufacturing base. - FY2024-Q3MaterialisedAnnual report
「The company announced a “Notice of Voluntary Recall of Certain Products” on 24 October 2023. In response, it is rapidly strengthening its quality control system, working to prevent recurrence and aiming to provide quality assurance exceeding industry standards.」
A voluntary recall of certain products actually occurred in connection with manufacturing and quality risks. Deductions from revenue due to refunds and recall-related costs have also been recorded. - FY2023First statedAnnual report
「The company’s top 3 suppliers accounted for a high 88.7% of total procurement in the fiscal year ended February 2023, and the company outsources manufacturing to specific companies.」
The company quantifies its concentration of contract manufacturers and identifies supply impacts from quality issues, regulatory violations, natural disasters and other events as risks.