Improving the Cost of Sales Ratio through Operational Efficiency, Advanced Technology and Partner Collaboration
First written in FY2019-Q3. 7 of 20 entries say "Advanced", first in FY2021-Q1. Latest entry: FY2026.
Image Information moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2020: 1 of 11 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Operating loss was ¥175,278 thousand, compared with an operating loss of ¥70,802 thousand in the previous consolidated fiscal year, due to orders and product sales falling short of plan, an increase in labor costs as a percentage of cost of sales, and the resulting burden of amortization of goodwill.」
Despite efforts to contain costs and improve profitability, the operating loss widened due to shortfalls in orders and product sales, the higher proportion of labor costs and goodwill amortization expenses. - FY2026-H1Deterioration in the cost ratio due to failure to meet order targetsAnnual report
「Because expected orders did not progress as planned, the cost of sales ratio, including outsourcing and labor costs, increased.」
The company states that, despite its focus on improving profitability and containing costs, expected orders did not progress as planned, causing the cost of sales ratio, including outsourcing and labor costs, to increase. - FY2025-H1Higher costs related to personnel and new servicesAnnual report
「We were unable to offset the increase in costs associated with the higher number of personnel.」「The cost of sales increased due to expenses associated with launching new services.」
The company states that, despite its cost-improvement initiatives, the cost of sales increased in IT Solutions due to the higher number of personnel and in BPO and Services due to expenses for launching new services, putting downward pressure on profit. - FY2024Failure to achieve cost improvementsAnnual report
「We worked to improve costs by reviewing contract terms and other matters, but progress fell short of the plan,」
The company states that, although it worked to improve costs by reviewing contract terms and other matters, progress fell short of the plan. - FY2024-Q3AdvancedAnnual report
「Meanwhile, through cost containment measures including the optimization of personnel allocation, segment profit was ¥92,811 thousand, up 1.8% year on year.」
The company implemented cost-containment measures including the optimization of personnel allocation, resulting in IT Solutions segment profit growth of 1.8% year on year. - FY2024-Q2RestatedAnnual report
「Alongside the implementation of these key measures, we worked to make active investments to enhance the technological and human resources capabilities that form the core of our strengths, provide optimal solutions through cooperation with solution vendors, and plan and develop business services.」
The company continues efforts to improve profitability through investment in technical capabilities and human resources, collaboration with solution vendors, and the planning and development of business services. - FY2023-Q3RestatedAnnual report
「Alongside the implementation of these key measures, we worked to make active investments to enhance the technological capabilities that form the core of our strengths, strengthen cooperation with partner companies, improve profitability, reinforce our organizational structure for developing new customers, and plan and develop business services.」
Although the company continues efforts to strengthen collaboration with partner companies and improve profitability, IT Solutions as a whole reported lower revenue and lower profit due to the reversal of the impact of a one-off large project. - FY2022-Q3AdvancedAnnual report
「In addition, as a result of our efforts since last year to improve QCD in our business processes, service quality has stabilized and the benefits of improved productivity and other measures have continued to emerge. In the BPO and Services segment, revenue also increased due to greater service provision resulting from deeper engagement with key customers, as well as a recovery in sales at retail stores and restaurants.」
The company states that continued efforts to improve QCD in its business processes stabilized service quality and improved productivity. It indicates that the benefits of its existing operating-efficiency and cost-containment measures have continued. - FY2022-Q2AdvancedAnnual report
「In addition, as a result of our efforts since last year to improve QCD in our business processes, productivity improved and revenue was ¥341,371 thousand, up 19.6% year on year.」
The company states that efforts since last year to improve QCD improved productivity, resulting in consolidated revenue growth of 19.6% year on year. - FY2022-Q1AdvancedAnnual report
「Since last year, we have worked to improve QCD in our business processes in the IT Solutions field. As a result of these efforts, productivity improved and revenue was ¥167,440 thousand, up 27.1% year on year.」
The company states that continued efforts to improve QCD in its business processes improved productivity, resulting in consolidated revenue growth of 27.1% year on year. - FY2021-Q3AdvancedAnnual report
「In consulting, design and development for corporate systems, sales activities stagnated as the COVID-19 pandemic spread, but the impact on contracted operations and maintenance services for existing customers was kept to a minimum. As a result, revenue was ¥324,096 thousand, down 13.3% year on year, while segment profit was ¥67,522 thousand, up 40.2%, due to a reduction in the cost of sales through measures including a review of project management.」
Progress in reducing the cost of sales through measures including a review of project management led to segment profit in IT Solutions of ¥67,522 thousand, up 40.2% year on year. - FY2021-Q2AdvancedAnnual report
「In the consulting, design and development services for corporate systems, sales activities stagnated as the COVID-19 pandemic spread, but the impact on contracted operations and maintenance services for existing customers was minimized. As a result, sales were ¥205.527 million, down 22.5% year on year, but segment profit was ¥38.098 million, down only 0.3% year on year, owing to reductions in cost of sales through measures including a review of project management.」
The company reduced the cost of sales through measures including a review of project management and maintained segment profit in IT Solutions at ¥38,098 thousand. - FY2021-Q1AdvancedAnnual report
「Through measures including a review of project management, we reduced the cost of sales, resulting in segment profit of ¥20,356 thousand, up 44.4% year on year.」
Following a review of project management and the resulting reduction in the cost of sales, segment profit in IT Solutions increased 44.4% year on year. - FY2020RestatedAnnual report
「We will continue to work to contain the cost of sales and focus on improving profitability by improving operating efficiency, using advanced technologies and strengthening collaboration with partner companies.」
The company continues to put forward measures to contain the cost of sales and improve profitability through greater operating efficiency, the use of advanced technologies and stronger collaboration with partner companies. - FY2020-Q3ReframedAnnual report
「The Group will standardize each process in project execution, from proposals through order acceptance, development and delivery, and seek to eliminate unprofitable projects through rigorous implementation of these standards. Specifically, it will strictly manage the basic areas of appropriate contracts, high profitability, stable quality and adherence to delivery schedules.」
The company has made its measures to improve the cost of sales ratio more specific, moving from general policies such as greater operating efficiency to standardizing all processes, eliminating unprofitable projects, and strictly managing contracts, profitability, quality and delivery schedules. - FY2020-Q1RestatedAnnual report
「We will continue to work to contain the cost of sales and focus on improving profitability by improving operating efficiency, using advanced technologies and strengthening collaboration with partner companies.」
The company continues to put forward measures to contain the cost of sales and improve profitability through greater operating efficiency, the use of advanced technologies and stronger collaboration with partner companies. - FY2019RestatedAnnual report
「We will continue to work to contain the cost of sales and focus on improving profitability by improving operating efficiency, using advanced technologies and strengthening collaboration with partner companies.」
The company continues to put forward measures to contain the cost of sales and improve profitability through greater operating efficiency, the use of advanced technologies and stronger collaboration with partner companies. - FY2019-Q3First statedAnnual report
「We will continue to work to contain the cost of sales and focus on improving profitability by improving operating efficiency, using advanced technologies and strengthening collaboration with partner companies.」
For the first time, the company presents operating efficiency, the use of advanced technologies and stronger collaboration with partner companies together as specific measures to improve the cost of sales ratio.