Inventory Risk Associated with Materials Procurement and Production Based on Forecast Orders
First written in FY2017. 2 of 7 entries say "Worsened", first in FY2020. Latest entry: FY2026.
Tamura moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 13 of 37 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「While recording costs related to production transfers, inventory clearance and workforce reallocations, we advanced balance-sheet streamlining by reducing the carrying amount of property, plant and equipment by approximately 15% and inventories by approximately 20%.」
The reorganization of the China operations led to improvements in inventory and asset efficiency, including a reduction in inventories. - 2026-05-13MitigatedFinancial results briefing materials
「Review of staffing and inventory reduction at Tamura Electronics (Shenzhen)」
A review of staffing and inventory reduction associated with the restructuring of Chinese sites was completed in September 2025, indicating progress in addressing inventory risk. - FY2025WorsenedAnnual report
「One factor delaying improvements in asset efficiency was the failure to optimize material inventories that had expanded as a result of the semiconductor shortage during the COVID-19 pandemic, leaving this issue outstanding for the next medium-term management plan.」
It was explicitly stated that material inventories, which had expanded in response to the semiconductor shortage, had not yet been optimized, contributing to the failure to improve asset efficiency. - FY2023MaterialisedAnnual report
「From the middle of the period onward, the rapid decline in tin prices led us to reduce selling prices, while we also had to use inventory purchased at high prices during the parts shortage, resulting in lower profitability.」
Inventory related to material prices and anticipated or advance procurement emerged as an actual factor behind the deterioration in profitability. - FY2020WorsenedAnnual report
「Given the nature of the business, we may arrange materials and products in advance and produce based on anticipated orders. If economic conditions deteriorate rapidly, the resulting buildup of these inventories may lead to unexpected inventory valuation losses.」
The risks associated with anticipated production and advance procurement were specified as potentially resulting in excess inventory and inventory valuation losses amid a rapid economic downturn or fluctuations in demand caused by COVID-19. - FY2018RestatedAnnual report
「We may arrange materials and produce based on anticipated orders, taking into account customer forecasts of demand and market trends, as judged by the Company. If anticipated orders differ from expectations, our Group will bear the inventory risk.」
The discussion of inventory risk associated with arranging materials and production based on forecasts is ongoing. - FY2017First statedAnnual report
「If forecast orders deviate from expectations, the group cannot pass on to customers compensation for the resulting losses and will bear the inventory risk, which may adversely affect results and financial condition.」
The company explains that forecast-based production to meet short lead times and customer-specific orders creates inventory risk when demand forecasts are inaccurate.