Risks from soaring raw material and component prices and procurement difficulties
First written in FY2016. 9 of 17 entries say "Mitigated", first in FY2023-Q2. Latest entry: FY2026.
YASKAWA Electric moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2021: 35 of 55 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The company also worked to reduce procurement risks related to rare-earth regulations globally by building long-term relationships with domestic suppliers.」
Responses to the risks of procurement difficulties and soaring prices became more concrete through supplier diversification, inventory, local procurement and design changes, as well as building long-term relationships with domestic suppliers in response to rare-earth regulations. - FY2025MitigatedAnnual report
「The company promoted the strengthening of its production and procurement systems and production systems near demand centers by steadily implementing measures including in-house production of key components globally, centralized procurement of priority components shared across business divisions, and investment to expand its business in North America and Europe.」
Responses to the risks of procurement difficulties and soaring prices progressed to in-house production of key components, centralized procurement of priority components and strengthening production systems near demand centers. - FY2024MitigatedAnnual report
「In this environment, the Group's business performance increased in revenue from the previous fiscal year as production delayed by supply chain disruptions normalized and the backlog of orders was worked down.」
The company explained that the normalization of production and working down the backlog of orders related to production delays caused by component shortages and other factors led to higher full-year revenue. - FY2024-Q3MitigatedAnnual report
「In this environment, the Group's business performance increased in revenue year on year as production delayed by supply chain disruptions, including component shortages, normalized and the backlog of orders was worked down.」
The company explained that the normalization of production and progress in working down the backlog of orders related to production delays caused by component shortages and other factors led to higher revenue for the first 9 months of the fiscal year. - FY2024-Q2MitigatedAnnual report
「In this environment, the Group's business performance increased in revenue as production delayed by supply chain disruptions, including component shortages, normalized and the backlog of orders was steadily worked down.」
Production delayed by component shortages and other factors normalized, and working down the backlog of orders led to higher sales. The explanation has progressed from recovery production in the previous quarter to production normalization. - FY2024-Q1MitigatedAnnual report
「Production that had been delayed by component shortages and the impact of lockdowns in China was recovered, and the backlog of orders was worked down. Revenue also increased due to the impact of yen depreciation.」
Production delayed by component shortages and lockdowns in China was recovered, and the backlog of orders was worked down. The company explained that in-house production of components in the Robotics business also contributed to production efficiency. - FY2023MitigatedAnnual report
「The Group's business performance was affected by production constraints caused by prolonged shortages of components such as semiconductors and lockdowns in China. From the second half of the fiscal year, however, production recovered as supply-demand tightness for components eased, and revenue increased as strong orders were converted into sales.」
Component shortages materialized as a production constraint in the first half of the fiscal year, while easing supply-demand tightness and a production recovery were reported in the second half. Responses including supplier diversification, in-house production of components and design changes were also formalized as measures under Realize 25. - FY2023-Q3MitigatedAnnual report
「In this environment, the Group's business performance was affected by production constraints caused by prolonged shortages of components such as semiconductors. However, production recovered from the second half of the fiscal year as supply-demand tightness eased, and revenue increased as strong orders were converted into sales.」
Although production constraints caused by component shortages continued, supply-demand tightness eased from the second half of the fiscal year and production recovered, according to the company. - FY2023-Q2MitigatedAnnual report
「Although production was affected by constraints caused by prolonged shortages of components such as semiconductors, production recovered from the second half of the fiscal year through the use of alternative components, design changes and purchases of commercially available products, resulting in higher revenue year on year.」
Component shortages continued to materialize as a production constraint, but production recovered from the second half of the fiscal year through the use of alternative components, design changes and purchases of commercially available products. quantified is false, materialized is true. - FY2023-Q1MaterialisedAnnual report
「In addition to a temporary decline in sales in China, production was affected by constraints caused by prolonged shortages of components such as semiconductors.」
The prolonged shortage of components such as semiconductors became an actual performance factor as a production constraint during the quarter. quantified is false, materialized is true. - FY2022MaterialisedAnnual report
「In particular, the risk of delivery delays has increased due to the prolonged global semiconductor shortage and disruption across the entire supply chain caused by the COVID-19 pandemic.」
Component shortages actually occurred as a production constraint throughout the fiscal year. Additional countermeasures included establishing a Supply Chain Management Department, diversifying suppliers, securing inventory and modifying designs. - FY2022-Q3MaterialisedAnnual report
「Although production was constrained by prolonged component shortages and other factors, the Group accurately captured strong demand centered on the Motion Control and Robotics segments, resulting in a substantial increase in revenue from the same period of the previous year. On the earnings side, while performance was affected by higher logistics and raw material costs,」
Production constraints caused by component shortages and higher logistics and raw material costs continued to be identified as actual performance factors. The materialization of procurement difficulty and soaring price risks continued. - FY2022-Q2MaterialisedAnnual report
「Although the Group's business performance was affected by production disruptions caused by component shortages, it accurately captured strong demand centered on the Motion Control and Robotics segments, resulting in a substantial increase in revenue from the same period of the previous year. On the earnings side, although performance was affected by higher logistics and raw material costs, operating profit increased substantially year on year due to improvement accompanying higher sales and thorough expense management.」
The procurement difficulties and soaring prices previously disclosed as risks were identified as actual performance factors, namely production impacts from component shortages and higher logistics and raw material costs. - FY2021ReframedAnnual report
「In response to these procurement risks, our Group is working to strengthen its procurement functions by building trusted relationships through dialogue with suppliers and diversifying its supplier base globally, while also responding to demand fluctuations by securing appropriate inventory levels and promoting local production and local procurement. It is also strengthening its response to disaster and other risks by formulating business continuity plans (BCPs) at domestic and major overseas sites.」
The scope of the risk was expanded from raw material prices and procurement volumes to supply chain risks including supplier operations, infectious diseases, conflict minerals and environmental compliance. Supplier diversification, inventory, local procurement and BCPs were identified as countermeasures. - FY2019RestatedAnnual report
「Depending on higher procurement prices and increased industry demand, it may not be possible to secure the required quantities on an ongoing basis.」
The company continues to disclose the soaring prices of raw materials and components and difficulty procuring the required quantities as risks. - FY2017RestatedAnnual report
「Depending on higher procurement prices and increased industry demand, it may not be possible to secure the required quantities on an ongoing basis.」
The company continues to identify soaring prices and difficulty securing the required quantities of raw materials and components, including steel products, as risks. - FY2016First statedAnnual report
「Depending on higher procurement prices and increased industry demand, it may not be possible to secure the required quantities on an ongoing basis.」
The company indicated that rising prices and difficulty securing the required quantities of raw materials and components, including steel products, could affect production and business performance.