A Balanced Production and Supply System through the Global Expansion of the Domestic Competitiveness Base

「The effect of lower direct material costs from further advancing global procurement will also contribute」

「Record-level rationalization and improvement centered on reducing direct-materials costs through improved global procurement sourcing and expanded in-house adoption of outsourced processing technologies」

「In particular, for direct materials, which account for the largest proportion of the cost structure, the company will develop new suppliers through borderless procurement and use low-cost, high-quality materials and components in the optimal regions.」

「Improving global procurement sourcing to reduce direct-materials costs and promoting engineering procurement through joint improvements with suppliers」

「While minimizing productivity losses from sharp fluctuations in production volumes in the fourth quarter, we improved profitability by starting mass production of the new stabilizer equipped with new technology, which represents the product value enhancement set out in the medium- to long-term management plan. We also implemented cost reductions beyond the scope of previous initiatives, including stronger global engineering procurement improvements.」

「In addition to improving profitability by beginning mass production of the new SDM stabilizer equipped with new technology, we offset the impact of inflation through cost reductions beyond existing approaches, including strengthened improvements in global direct-material procurement, and revisions to selling prices for customers.」

「As rationalization improvements, we challenged activities beyond conventional frameworks, including globally promoting initiatives to reduce costs together with suppliers by supporting process improvements at suppliers in direct-material procurement, rather than simply comparing costs.」

「We will designate the current year and next year as a period of upfront investment, strengthen the foundation for fundamental cost reductions through concentrated investment and borderless procurement of direct materials, and then secure earnings reliably and at an accelerated pace during the subsequent investment recovery period, targeting net sales of at least ¥100 billion and an operating margin and ROE of 5%, the goals of our medium- to long-term plan.」

「Regarding our global expansion, we will expand our global supply structure in China, North America, and Asia, increase the overseas production ratio, and focus on expanding sales to customers other than our major customers.」

「For raw-material purchases, we are promoting global lowest-cost sourcing activities, developing new suppliers in India, China and elsewhere, and preparing for cost reductions beyond those achievable through existing approaches.」

「The group has worked to reduce total costs across all expense categories, including procuring steel for direct materials from the lowest-cost regions globally, purchasing from suppliers, jointly promoting reductions in the cost of purchased components with suppliers, further strengthening reductions in labor and operating costs through improvements at manufacturing sites, a core strength of the company, and improving logistics efficiency.」

「Strengthening competitiveness: establishing a globally optimized procurement and production system and improving productivity through digitalization」

「The company is working to establish a balanced domestic and overseas production and supply system by expanding globally the competitive foundation it established in Japan.」

「The company is working to establish a balanced domestic and overseas production and supply system by expanding globally the competitive foundation it established in Japan.」