Supply Risk from Reliance on OEM Manufacturing
First written in FY2016. 5 of 10 entries say "Restated". Latest entry: FY2026.
House Of Rose moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2024: 10 of 32 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Across the entire supply chain, including OEM manufacturers, if a manufacturing subcontractor were affected by a natural disaster, accident or other unforeseen event, causing its manufacturing or quality-control capabilities to deteriorate, or if a cyberattack or similar incident occurred, the stable supply and quality of products could be disrupted, potentially affecting the Company’s operating results and financial condition.」
In addition to the existing risks related to OEM manufacturers’ performance and bankruptcy, it specified supply and quality risks across the entire supply chain arising from natural disasters, accidents and cyberattacks. - FY2025MitigatedAnnual report
「The Company established a rotating factory-audit program covering 50 major OEM suppliers.」
To address quality and supply risks at OEM suppliers, it established rotating factory audits covering major OEM suppliers. - FY2025-H1MitigatedAnnual report
「In addition, the household merchandise product “Loofah Slippers,” which could not be procured in the previous fiscal year because of raw-material shortages, was well received during the current period and contributed to an increase in new customers.」
It indicates that a product that could not be procured in the previous fiscal year because of raw-material shortages was sold during the current interim accounting period, easing the specific supply-side issue. - FY2024-Q1MaterialisedAnnual report
「In addition, some general merchandise products that had contributed to sales during this period each year could not be procured because of raw-material sourcing issues, contributing to the decline in business sales.」
Some general merchandise products could not be procured because of raw-material sourcing issues, contributing to the decline in business sales. - FY2023RestatedAnnual report
「The Company outsources the production of its private-label products to OEM manufacturers under a fabless production model. Although it has established a comprehensive system for quality control and stable supply through product inspections based on Company standards and memoranda of understanding, difficulties in an OEM manufacturer’s operations or its bankruptcy could disrupt product development and the supply of some products, potentially affecting the Company’s operating results and financial condition.」
It reiterates supply interruption and credit risks associated with fabless OEM production, together with responses through product inspections and memoranda of understanding. - FY2021RestatedAnnual report
「The Company outsources the production of its private-label products to OEM manufacturers under a fabless production model. Although it has established a comprehensive system for quality control and stable supply through product inspections based on Company standards and memoranda of understanding, difficulties in an OEM manufacturer’s operations or its bankruptcy could disrupt product development and the supply of some products, potentially affecting the Company’s operating results and financial condition.」
It reiterates supply interruption and credit risks associated with fabless OEM production, together with responses through product inspections and memoranda of understanding. - FY2020RestatedAnnual report
「The Company outsources the production of its private-label products to OEM manufacturers under a fabless production model. Although it has established a comprehensive system for quality control and stable supply through product inspections based on Company standards and memoranda of understanding, difficulties in an OEM manufacturer’s operations or its bankruptcy could disrupt product development and the supply of some products, potentially affecting the Company’s operating results and financial condition.」
It reiterates supply interruption and credit risks associated with fabless OEM production, together with responses through product inspections and memoranda of understanding. - FY2019RestatedAnnual report
「The Company outsources the production of its private-label products to OEM manufacturers under a fabless production model. Although it has established a comprehensive system for quality control and stable supply through product inspections based on Company standards and memoranda of understanding, difficulties in an OEM manufacturer’s operations or its bankruptcy could disrupt product development and the supply of some products, potentially affecting the Company’s operating results and financial condition.」
It reiterates supply interruption and credit risks associated with fabless OEM production, together with responses through product inspections and memoranda of understanding. - FY2017RestatedAnnual report
「The Company outsources the production of its private-label products to OEM manufacturers under a fabless production model. Although it has established a comprehensive system for quality control and stable supply through product inspections based on Company standards and memoranda of understanding, difficulties in an OEM manufacturer’s operations or its bankruptcy could disrupt product development and the supply of some products, potentially affecting the Company’s operating results and financial condition.」
It continues to disclose supply interruption and OEM manufacturer credit risks associated with fabless OEM production, together with responses through product inspections and memoranda of understanding. - FY2016First statedAnnual report
「The Company outsources the production of its private-label products to OEM manufacturers under a fabless production model. Although it has established a comprehensive system for quality control and stable supply through product inspections based on Company standards and memoranda of understanding, difficulties in an OEM manufacturer’s operations or its bankruptcy could disrupt product development and the supply of some products, potentially affecting the Company’s operating results and financial condition.」
It states that, under the fabless production model, the operating and credit conditions of OEM manufacturers could affect supply.