Dependence on contract manufacturers and supply and quality risks
First written in FY2021. 1 of 3 entries say "Mitigated", first in FY2022. Latest entry: FY2023.
The whole theme swung hardest in 2020: 4 of 28 companies on the "Worse" side.
33 other companies' latest entry also says "Restated".
- FY2023RestatedAnnual report
「The company conducts regular audits of each contract manufacturer and secondary subcontractor, distributes their locations geographically, and requires them to submit inspection records for each product, among other measures, taking every possible measure to manage the quality of its contract manufacturers and secondary subcontractors and reduce risks」
The company reiterated its dependence on outsourced manufacturing and the associated quality and supply risks, as well as its responses through audits, geographic diversification, inspection records, and planned ordering. - FY2022MitigatedAnnual report
「The company conducts regular audits of each contract manufacturer and secondary subcontractor, distributes their locations geographically, and requires them to submit inspection records for each product, among other measures. It is taking every possible measure to manage the quality of its contract manufacturers and secondary subcontractors and reduce risks.」
The risk arising from dependence on contract manufacturing remains, but the company has specified mitigation measures including audits, geographic diversification, submission of inspection records, and planned ordering. - FY2021First statedAnnual report
「To improve operating efficiency by concentrating its management resources on research and development and sales activities, the company outsources the manufacture of its products. For some products, manufacturing is further subcontracted by the contract manufacturers to secondary subcontractors.」
The company described the possibility that quality issues, termination of contracts, and facility damage caused by natural disasters could affect supply and business performance.