Risk of Supply Chain Disruptions and Higher Logistics Costs
First written in FY2024. 1 of 2 entries say "Mitigated", first in FY2025. Latest entry: FY2025.
The whole theme swung hardest in 2024: 11 of 33 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「To address disruptions to procurement routes, we seek to minimise their impact on our business activities by diversifying sources of raw materials and fuel and production sites, maintaining appropriate inventory levels and implementing prepared countermeasures as needed when risks materialise.」
Specific measures to address supply chain disruptions and higher logistics costs include diversifying procurement sources and production sites, securing inventory, shifting to alternative transport modes and using multiple transportation methods. - FY2024First statedAnnual report
「In procurement, the bankruptcy of affiliated companies, war, conflict, terrorism, pandemics, natural disasters, global environmental issues, human rights issues and other factors may cause raw material and fuel prices to rise or disrupt procurement routes. In logistics, driver shortages, tighter restrictions on overtime work and higher fuel costs may cause costs to rise or disrupt transportation.」
In addition to the existing raw material and fuel price and supply risks, driver shortages, overtime work regulations, higher logistics costs and transportation disruptions have been identified as standalone supply chain risks.