Supply shortages and excess inventory due to demand-forecasting errors
First written in FY2017. 4 of 6 entries say "Restated". Latest entry: FY2024-Q1.
The whole theme swung hardest in 2022: 13 of 37 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2024-Q1MitigatedAnnual report
「By strengthening coordination between sales planning and product procurement and implementing measures to prevent lost sales opportunities, fashion brands including IEDIT and THREE FIFTY STANDARD secured stable net sales.」
The company states that it strengthened coordination between sales planning and product procurement, implemented measures to prevent lost sales opportunities, and secured stable net sales across several fashion brands. - FY2023RestatedAnnual report
「Our group is working to improve demand forecast accuracy and build a supply chain capable of responding quickly to order fluctuations so that products can be supplied in the right quantities at the right time. However, if a major supply shortage exceeds our group's response capacity, if new products underperform and fall below the initial demand forecast, or if we cannot fully respond to a major contraction in demand caused by changes in trends, seasonal fluctuations or weak consumption, our group's performance may be affected.」
The risks of supply shortages and excess inventory caused by demand forecast errors, as well as the challenges of improving forecast accuracy and the supply chain, continue. - FY2021RestatedAnnual report
「To supply products in the right quantities at the right time in response to orders, our group is working to improve demand forecast accuracy and build a supply chain capable of responding quickly to order fluctuations.」
The risks of supply shortages and excess inventory caused by demand forecast errors, as well as the challenges of improving forecast accuracy and the supply chain, continue. - FY2020RestatedAnnual report
「To supply products in the right quantities at the right time in response to orders, our group is working to improve demand forecast accuracy and build a supply chain capable of responding quickly to order fluctuations.」
The risks of supply shortages and excess inventory caused by demand forecast errors, as well as the challenges of improving forecast accuracy and the supply chain, continue. - FY2019RestatedAnnual report
「To supply products in the right quantities at the right time in response to orders, our group is working to improve demand forecast accuracy and build a supply chain capable of responding quickly to order fluctuations.」
The risks of supply shortages caused by orders exceeding the demand forecast and excess inventory and valuation losses caused by orders falling below it, as well as the challenges of improving forecast accuracy and the supply chain, continue. - FY2017First statedAnnual report
「If actual orders exceed the demand forecast, additional procurement may not keep pace with the speed of orders, resulting in lost sales opportunities and costs for separate deliveries from other ordered products. If actual orders fall below the demand forecast, our group may incur excess inventory, affecting cash flow and potentially resulting in inventory valuation losses.」
The company identifies both supply shortages caused by orders exceeding the demand forecast and excess inventory and valuation losses caused by orders falling below it as risks. Improving demand forecast accuracy and building the supply chain are identified as challenges.