Dependence on Suppliers of Raw Materials and Parts and Risk of Supply Shortages
First written in FY2017. 5 of 15 entries say "Materialised", first in FY2018-Q1. Latest entry: FY2026.
Tokai Rika moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 35 of 57 companies on the "Worse" side.
2 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「We are introducing flexible equipment capable of handling a wide range of components in common processes such as assembly and material handling to improve equipment utilization and make more effective use of production space. With a view to expanding use by business partners in the future, we will strengthen competitiveness by building a supply chain resilient to production fluctuations and supply risks, while limiting the decline in utilization and disposal losses resulting from dependence on dedicated equipment.」
In addition to identifying and managing high-risk suppliers, the company has specified measures to address production fluctuations and supply risks by introducing flexible equipment for common processes. - FY2024RestatedAnnual report
「From the perspective of business continuity, we identify high-risk suppliers and confirm whether the relevant suppliers are appropriately managing inventory, processes and production. We also share identified issues and formulate improvement plans for each supplier.」
The company continues to identify high-risk suppliers, check inventory, process and production management, and formulate improvement plans for each supplier. - FY2024-Q3MitigatedAnnual report
「(North America) Sales increased to ¥120,706 million, up ¥25,233 million (26.4%) from the same quarter of the previous year, mainly because production volumes for customers increased and the higher cost of raw materials was increasingly passed through to selling prices. Operating income increased to ¥7,152 million, up ¥9,230 million year on year, mainly because of higher sales.」
In North America, the higher cost of raw materials was increasingly passed through to selling prices, and operating income increased by ¥9,230 million year on year. The response to higher raw material prices is reflected in actual results. - FY2024-Q2MitigatedAnnual report
「Operating income was ¥2,528 million, compared with ¥2,383 million in the same quarter of the previous year, mainly because production volumes for customers increased and the higher cost of raw materials was increasingly passed through to selling prices.」
In North America, the higher cost of raw materials was increasingly passed through to selling prices, and operating income increased by ¥2,383 million year on year. The response to the risk of higher raw material prices is reflected in actual results. - FY2023-Q3WorsenedAnnual report
「The number of vehicles produced for customers decreased because of semiconductor shortages and other factors. Sales fell to ¥199,833 million, down ¥1,788 million (0.9%) from the same quarter of the previous year. Operating loss was ¥6,261 million, compared with a loss of ¥6,089 million in the same quarter of the previous year, due to higher raw material prices and other factors despite streamlining efforts.」
Semiconductor shortages and other factors, together with higher raw material prices, have emerged as lower sales in Japan and an operating loss of ¥6,261 million, with the loss also widening year on year. - FY2023-Q2WorsenedAnnual report
「The number of vehicles produced for customers decreased from the previous year because of semiconductor shortages and other factors. Sales fell to ¥128,128 million, down ¥5,147 million (3.9%) from the same quarter of the previous year. Operating loss was ¥5,022 million due to higher raw material prices and other factors despite streamlining efforts.」
Lower production volumes for customers caused by semiconductor shortages and other factors, together with higher raw material prices, have emerged as lower sales in Japan and an operating loss of ¥5,022 million. - FY2023-Q1MaterialisedAnnual report
「The number of vehicles produced for customers decreased from the previous year because of semiconductor shortages and other factors. Sales fell to ¥59,250 million, down ¥10,822 million (15.4%) from the same quarter of the previous year. Operating loss was ¥4,105 million due to higher raw material prices and other factors despite streamlining efforts.」
Lower production volumes caused by semiconductor shortages and other factors, together with higher raw material prices, have emerged as lower sales and an operating loss in the Japan segment. - FY2022MaterialisedAnnual report
「Operating loss was ¥6,201 million due to higher raw material prices and other factors.」
Higher raw material prices have emerged as an operating loss in the Japan segment. Management and improvement plans for individual suppliers continue in response to supplier shutdowns, soaring prices and component shortages. - FY2020MitigatedAnnual report
「From the perspective of business continuity, the Group identifies high-risk suppliers and confirms whether the relevant suppliers are appropriately managing inventory, processes and production. The Group shares identified issues and formulates improvement plans for each supplier.」
To address the risk of dependence on suppliers, the company has specified measures including identifying high-risk suppliers, checking inventory, process and production management, and preparing improvement plans for each supplier. - FY2019RestatedAnnual report
「The Group’s production depends on multiple suppliers of raw materials and components. … There is no guarantee that shortages of raw materials or components will not occur because of global shortages caused by tight supply or unforeseen accidents involving suppliers. In such cases, production may be delayed and costs may increase.」
The company continues to disclose its dependence on multiple suppliers and the possibility of shortages, production delays and higher costs caused by supply constraints or supplier accidents. - FY2018RestatedAnnual report
「The Group’s production depends on multiple suppliers of raw materials and components. … There is no guarantee that shortages of raw materials or components will not occur because of global shortages caused by tight supply or unforeseen accidents involving suppliers.」
The company continues to disclose its dependence on multiple suppliers and the possibility of shortages, production delays and higher costs caused by global supply constraints or supplier accidents. - FY2018-Q3MaterialisedAnnual report
「Sales increased to ¥205,727 million, up ¥10,763 million (5.5%) from the same quarter of the previous year, mainly because of the weaker yen. Operating income increased to ¥6,705 million, up ¥741 million (12.4%) from the same quarter of the previous year, as higher sales and streamlining efforts offset the impact of higher raw material prices and other factors.」
The company states that, although raw material prices increased in Japan, the impact on operating income was absorbed through higher sales and streamlining efforts. The cost risk from higher raw material prices itself continues to be reflected in actual results. - FY2018-Q2MaterialisedAnnual report
「Operating income was ¥3,704 million, down ¥369 million (9.0%) from the same quarter of the previous year, due to higher raw material prices and other factors despite streamlining efforts. Operating income was ¥1,969 million, down ¥1,635 million (45.4%) from the same quarter of the previous year, due to lower sales and higher raw material prices, among other factors.」
In Japan and North America, higher raw material prices have emerged as a factor reducing operating income, and the cost risk associated with sourcing raw materials continues to be reflected in actual results. - FY2018-Q1MaterialisedAnnual report
「Operating income was ¥1,350 million, down ¥941 million (41.1%) from the same quarter of the previous year, due to higher raw material prices and other factors despite streamlining efforts. Operating income was ¥3,341 million, down ¥45 million (1.3%) from the same quarter of the previous year, due to higher raw material prices and other factors.」
Higher raw material prices have emerged in actual results as a decline in operating income in North America and Asia, making the cost risk associated with sourcing raw materials and components apparent. - FY2017First statedAnnual report
「The Group’s production depends on multiple suppliers of raw materials and components. The Group has entered into basic transaction agreements with its suppliers and regards stable transactions in raw materials and components as a prerequisite for stable production. However, there is no guarantee that shortages of raw materials or components will not occur because of global shortages caused by tight supply or unforeseen accidents involving suppliers.」
The company newly describes its dependence on multiple suppliers, stable transactions under basic transaction agreements, and the possibility of production delays and higher costs resulting from global supply constraints or supplier accidents.