Increase in in-transit and production inventory levels in response to longer logistics lead times
First written in FY2022-Q2. 2 of 5 entries say "Advanced", first in FY2022-Q3. Latest entry: FY2027-H1.
No other company in this theme has enough history to compare yet.
- FY2027-H1Raw material inventories increased to support higher CTC ordersAnnual report
「The increase in inventories was primarily due to higher raw-material inventories in preparation for expanded production and sales activities accompanying increased orders in the CTC segment.」
Unlike the previous response to longer logistics lead times, raw-material inventories increased this time in preparation for increased CTC orders and expanded production and sales activities. - FY2023MitigatedAnnual report
「The decrease in inventories was due to factors including a reduction in in-transit inventory in the automotive communications equipment segment as lead times for ocean and air freight normalized.」
As logistics lead times normalized, in-transit inventory that had been increased to maintain supply declined. - FY2022AdvancedAnnual report
「The significant increase in inventories was due to an increase in in-transit inventory in the automotive communications equipment segment resulting from longer global lead times for ocean and air freight, as well as a further increase in production and inventory levels to maintain supply in response to this situation.」
Production and inventory levels were raised further in response to longer logistics lead times. Inventories increased by ¥5,368 million from the end of the previous fiscal year, representing a ¥4,190 million decrease factor in cash flow from operating activities. - FY2022-Q3AdvancedAnnual report
「The substantial increase in inventories was due to higher inventories in transit in the automotive communications equipment segment as lead times for global ocean and air transportation continued to lengthen, as well as further increases in production and inventory levels to maintain supply in response to those conditions.」
Inventories increased by ¥4,962 million from the end of the previous consolidated fiscal year, as in-transit inventory was increased in response to longer logistics lead times and production and inventory levels were raised further. - FY2022-Q2First statedAnnual report
「Assets at the end of the second quarter of the current consolidated fiscal year totaled ¥60,964 million, an increase of ¥4,096 million from the end of the previous consolidated fiscal year, due mainly to an increase of ¥197 million in cash and deposits, a decrease of ¥630 million in trade receivables, an increase of ¥3,497 million in inventories and an increase of ¥444 million in property, plant and equipment. The decrease in trade receivables was mainly due to lower sales resulting from automobile manufacturers’ production cuts in the automotive communications equipment segment. The significant increase in inventories was due to an increase in in-transit inventory in the automotive communications equipment segment amid the global trend toward longer lead times for ocean and air freight, as well as a further increase in production and inventory levels to maintain supply in response to this situation.」
In response to longer logistics lead times, the company increased in-transit inventory in automotive communications equipment and raised production and inventory levels to maintain supply, recording this for the first time as a separate operational response.