Procurement Risk from Shortages, Price Increases and Delivery Delays
First written in FY2016. 8 of 19 entries say "Worsened", first in FY2018-Q2. Latest entry: FY2026-H1.
Life Intelligent Enterprise Holdings moved to the "Worse" side of this theme in 2016, 6 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 45 of 64 companies on the "Worse" side.
21 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「Sales continued to perform steadily and increased year on year, but higher raw-material prices and shipping costs made it difficult to secure profit as planned.」
Higher raw-material prices and shipping costs increased the burden in the meat-wholesale business. Sales increased, but the company continued to have difficulty securing sufficient profit. - FY2025WorsenedAnnual report
「With raw-material and logistics costs expected to remain high, we will improve manufacturing-process efficiency and review the product lineup.」
The company expects raw-material and logistics costs to remain high and plans to improve manufacturing efficiency and review its product lineup. In the alcoholic beverage manufacturing business, gross profit has been trending down because of higher cost of sales and logistics costs. - FY2025-H1MaterialisedAnnual report
「Although shipments were delayed by the typhoon, sales remained broadly in line with the previous year.」
The supply and delivery risk from natural disasters materialized as shipment delays caused by a typhoon in the alcoholic beverage manufacturing business. - FY2024-Q1RestatedAnnual report
「The economic recovery has slowed and the outlook remains uncertain as energy and raw-material prices continue to rise because of the Russia-Ukraine situation and related factors.」
The company continues to recognize higher energy and raw-material prices and the resulting uncertainty as procurement and cost pressures. - FY2023WorsenedAnnual report
「Higher overall expenses following the minimum-wage increase and price hikes, particularly the sharp rise in utilities, had a significant impact, reducing operating profit by ¥127 million.」
Cost pressure related to procurement and price fluctuations materialized as higher expenses following minimum-wage increases and price hikes, especially utilities, reducing operating profit by ¥127 million. - FY2023-Q3WorsenedAnnual report
「The meat-wholesale business began in May 2022 but was unfortunately loss-making. Although sales exceeded the previous year, profit declined because utilities and other costs increased by approximately ¥70 million year on year.」
In addition to existing cost pressure from raw materials and logistics, utilities and other costs in the food distribution business increased by approximately ¥70 million year on year and reduced profit. - FY2023-Q2WorsenedAnnual report
「However, the outlook remains uncertain because of downside risks such as higher prices resulting from the prolonged situation in Ukraine and the sharp depreciation of the yen.」
In connection with supply and raw-material price risks, the company identifies the prolonged situation in Ukraine and sharp yen depreciation as factors driving higher prices. - FY2023-Q1WorsenedAnnual report
「The economic recovery has slowed and the outlook remains uncertain as energy and raw-material prices continue to rise because of the Russia-Ukraine situation and related factors.」
In addition to existing raw-material price and supply risks, the company cites further increases in energy and raw-material prices due to the Russia-Ukraine situation. - FY2021RestatedAnnual report
「Although we work to build close relationships with suppliers to avoid supply-related problems, there is no guarantee that shortages, delivery delays or other supply-related problems can be completely avoided. If such problems occur, they could adversely affect the group’s business activities and performance.」
The company continues to disclose the risks of shortages, delivery delays and price increases while describing supplier relationships as a mitigation measure. - FY2021-Q3RestatedAnnual report
「In July, damage to a logistics warehouse caused by torrential rain resulted in a suspension of product shipments for approximately 2 weeks. The impact of product shortages continued through August and contributed to sluggish sales.」
The company continues to describe the warehouse damage, approximately 2-week shipment suspension, product shortages through August and the resulting impact on sales as an event that occurred in the previous quarter. - FY2021-Q2MaterialisedAnnual report
「In July, damage to a logistics warehouse caused by torrential rain resulted in a suspension of product shipments for approximately 2 weeks. The impact of product shortages continued through August and contributed to sluggish sales.」
Damage to a logistics warehouse from torrential rain, a shipment suspension of approximately 2 weeks and product shortages continuing through August actually occurred and contributed to sluggish sales in the alcoholic beverage manufacturing business. - FY2020RestatedAnnual report
「Although we work to build close relationships with suppliers to avoid supply-related problems, there is no guarantee that shortages, delivery delays or other supply-related problems can be completely avoided.」
The company continues to disclose the risks of shortages, higher prices and delivery delays, together with its response of building supplier relationships. - FY2020-Q2WorsenedAnnual report
「The operating environment generally deteriorated as higher raw-material and personnel costs caused costs to rise and business conditions weakened.」
In connection with the existing risks of shortages and price increases, higher raw-material prices materialized as cost pressure together with higher personnel costs. - FY2019-Q1MaterialisedAnnual report
「For some liqueur products that had been very well received by consumers, securing raw materials became a bottleneck despite strong demand, resulting in depleted inventories and lost sales opportunities.」
Raw-material availability became an actual bottleneck, causing popular liqueur products to run out of stock and resulting in lost sales opportunities. - FY2018RestatedAnnual report
「Although we work to build close relationships with suppliers to avoid supply-related problems, there is no guarantee that shortages, delivery delays or other supply-related problems can be completely avoided.」
The company continues to disclose the risks of shortages, higher raw-material and product prices and delivery delays, together with its response of building supplier relationships. - FY2018-Q3RestatedAnnual report
「We aim to restore performance through more efficient management in response to higher logistics costs, including shipping expenses.」
The company continues to recognize pressure from higher logistics costs and reiterates its policy of responding through greater management efficiency. - FY2018-Q2WorsenedAnnual report
「We aim to restore performance through more efficient management in response to higher logistics costs, including shipping expenses.」
In addition to the existing risk of raw-material and product price fluctuations, increases in logistics costs such as shipping expenses are specifically identified as cost pressure. - FY2017-Q2MaterialisedAnnual report
「Although poor summer weather caused market prices to remain high and made procurement controls difficult, we exceeded the previous year’s result.」
Higher market prices and difficulty controlling procurement due to poor weather actually occurred in the food distribution business. - FY2016First statedAnnual report
「Shortages of raw materials and products could cause sharp price increases. The prices of the raw materials and products purchased by the group may fluctuate, and higher prices could increase manufacturing costs and cost of sales, adversely affecting performance.」
The company identifies supplier capacity, shortages of raw materials and products, price increases and delivery delays as procurement risks.