Reliance on Specific Suppliers and Supply Disruptions
First written in FY2016. 10 of 29 entries say "Restated". Latest entry: FY2026.
Japan Lifeline 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 2020: 20 of 62 companies on the "Worse" side.
41 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「In particular, in the fiscal year ending March 2026, products and other items procured from the five largest suppliers accounted for approximately 40% of consolidated net sales. The company recognizes that if risks relating to these key suppliers materialize, a certain degree of impact is likely to arise.」
The company reconfirmed that dependence on key suppliers accounts for approximately 40% of consolidated net sales and identified extending contract terms, compensation provisions in the event of a change of control, and securing alternative suppliers as countermeasures. - FY2025-H1RestatedAnnual report
「No new business or other risks arose during the current interim consolidated accounting period. In addition, there were no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company disclosed that there had been no material changes regarding its dependence on specific suppliers and the risk of supply disruptions. - FY2024-Q3MitigatedAnnual report
「Although supply shortages of the endoscopic laser ablation catheter “HeartLight X3 (HeartLight X3)” from the supplier-manufacturer showed some improvement in the third quarter, sales remained sluggish.」
Supply shortages of HeartLight X3 from the supplier-manufacturer continued, although supply conditions showed some improvement in the third quarter. - FY2024-Q2MitigatedAnnual report
「The endoscopic laser ablation catheter “HeartLight X3 (HeartLight X3)” was affected by product shortages resulting from raw-material shortages at the supplier-manufacturer. Although procurement conditions showed some improvement in the second quarter, sales remained sluggish.」
The shortage of HeartLight X3 caused by raw-material shortages at the supplier-manufacturer continued, although procurement conditions showed some improvement in the second quarter. - FY2024-Q1WorsenedAnnual report
「The endoscopic laser ablation catheter “HeartLight X3 (HeartLight X3)” continued to be affected by raw-material shortages at the supplier-manufacturer, and adequate product supplies remained unavailable. As a result, sales were conducted under constraints, including curbing expansion into new facilities.」
Supply constraints for HeartLight X3 caused by raw-material shortages at the supplier-manufacturer continued, and the company remained unable to avoid curbing sales expansion into new facilities. - FY2023MaterialisedAnnual report
「Baylis Medical, which had been one of our five largest suppliers, was acquired, so the exclusive distribution agreement for the atrial septal puncture needle “RF Needle” purchased from Baylis Medical (fiscal 2023 net sales: approximately ¥3.8 billion) ended at the end of March 2023. As a result, our net sales are expected to decline significantly from April 2024 onward.」
The exclusive distribution agreement for RF Needle ended following the acquisition of the supplier, and the resulting loss of approximately ¥3.8 billion in net sales from April 2024 onward was quantified. - FY2023-Q3MaterialisedAnnual report
「Sales of the product were temporarily suspended because supply from the manufacturer was disrupted amid the global shortage of raw materials in July and August 2022. The situation was temporarily resolved in September, but supply problems arose from October onward due to shortages of other raw materials.」
The global shortage of raw materials disrupted supply of HeartLight X3 from the manufacturer, resulting in a temporary sales suspension followed by renewed supply problems. - FY2023-Q2MaterialisedAnnual report
「Due to the global shortage of raw materials, deliveries of the endoscopic laser ablation catheter HeartLight X3 from the manufacturer were delayed, temporarily making it impossible to sell the product.」
The global shortage of raw materials delayed supply of HeartLight X3 from the manufacturer, and a situation in which the product could not temporarily be sold actually occurred. - FY2023-Q1MaterialisedAnnual report
「The endoscopic laser ablation catheter generated a significant increase in sales following the introduction of the next-generation HeartLight X3. However, product deliveries have been delayed due to the global shortage of raw materials, and progress against the plan is somewhat behind schedule.」
The global shortage of raw materials actually delayed deliveries of HeartLight X3, resulting in progress falling behind plan. - FY2022WorsenedAnnual report
「In particular, regarding product procurement, products sourced from the top 5 suppliers accounted for approximately 40% of consolidated sales in the fiscal year ended March 2022. The company recognizes that the materialization of risks relating to these suppliers would have a certain impact.」
The company continued to disclose that its dependence on the top 5 suppliers accounted for approximately 40% of consolidated sales, and stated that it was discussing how to handle the contract through February 2023 following Baylis Medical's acquisition by Boston Scientific. - FY2021-Q3WorsenedAnnual report
「In addition to interest expense and foreign exchange losses, following the filing by the supplier of the company's abdominal stent grafts for protection under Chapter 11 of the U.S. Bankruptcy Code to rebuild its finances, the company recorded ¥1,043 million in non-operating expenses, including losses on loans and other items related to the supplier.」
Losses on loans and other items related to the financial restructuring filing by the supplier of abdominal stent grafts were included in ¥1,043 million of non-operating expenses, and the impact of the supplier's financial deterioration intensified. - FY2021-Q2MaterialisedAnnual report
「In addition to interest expense and foreign exchange losses, following the filing by Endologix, Inc., the supplier of the company's abdominal stent grafts, for protection under Chapter 11 of the U.S. Bankruptcy Code to rebuild its finances, the company recorded ¥788 million in non-operating expenses, including an allowance for doubtful accounts related to loans to Endologix.」
Following Endologix's filing for financial restructuring, the company recorded ¥788 million in non-operating expenses, including an allowance for doubtful accounts related to loans, and the impact of the supplier's financial deterioration continued to materialize. - FY2021-Q1MaterialisedAnnual report
「In addition to interest expense and foreign exchange losses, Endologix, Inc. (U.S.), the supplier of the company's abdominal stent grafts, filed for protection under Chapter 11 of the U.S. Bankruptcy Code to rebuild its finances. Accordingly, the company recorded ¥625 million in non-operating expenses, including an allowance for doubtful accounts related to loans to Endologix.」
Endologix, the supplier of abdominal stent grafts, filed for protection under Chapter 11 of the U.S. Bankruptcy Code, and the supplier's financial deterioration actually occurred. The filing does not itself describe any supply disruption. - FY2020WorsenedAnnual report
「In particular, regarding product procurement, products purchased from the top 5 suppliers accounted for approximately 40% of consolidated sales in the fiscal year ended March 2020. The company recognizes that the materialization of risks relating to these suppliers would have a certain impact.」
The company quantified its dependence on specific suppliers for the first time, stating that sales of products sourced from the top 5 suppliers accounted for approximately 40% of consolidated sales. It also described mitigation measures including longer contract terms and compensation provisions in the event of a change in control. - FY2020-Q3MitigatedAnnual report
「The company continued to conduct temporary transactions with Teleflex Medical Europe under the same terms as the original contract with Vascular Solutions through the end of December 2019. From January 2020, it agreed to conduct transactions with Teleflex Medical Europe under a new contract through the end of December 2020, with annual renewals subject to discussion.」
The company moved from temporary transactions that had continued after the supplier acquisition to a new contract, formalizing the transaction terms for coronary penetration catheters. - FY2020-Q2MitigatedAnnual report
「Under the exclusive distribution agreement signed in 2018, the planned change of supplier for CRM-related products, from the former business partner to Boston Scientific Japan, was completed in September 2019.」
The planned changeover of CRM-related products from the former supplier to BSC was completed, bringing to a close the transition in suppliers and the supply structure that had continued from the previous fiscal year. - FY2020-Q1RestatedAnnual report
「Following the acquisition of Vascular Solutions by Teleflex Medical Europe, the company is negotiating contract terms with Teleflex Medical Europe and has agreed to continue transactions temporarily under the same terms as the original contract with Vascular Solutions.」
Although negotiations on contract terms following the supplier acquisition are continuing, the company describes an agreement to continue temporary transactions under the same terms as the original contract. - FY2019WorsenedAnnual report
「Although multiple sales agreements have ended in the past due to acquisitions of product suppliers, securing competitive products is extremely important to the group's business strategy. To reduce the impact if risks materialize, the group is working to stabilize procurement through long-term contracts and multiple sourcing, and to expand the range of products it handles.」
The company explicitly stated that multiple agreements had ended in the past due to supplier acquisitions. In terms of actual results, sales of existing rhythm devices also declined following a supplier change. - FY2019-Q3WorsenedAnnual report
「In rhythm devices, sales of existing products declined, in addition to a shortage of certain products from the beginning of the current consolidated fiscal year, following the announcement in August 2018 of a change in suppliers.」
With shortages of certain products continuing from the beginning of the fiscal year, the announcement of a supplier change added to the impact related to supply and suppliers, resulting in a further decline in sales of existing rhythm devices. - FY2019-Q2RestatedAnnual report
「In cardiac pacemakers, sales volumes declined year on year, in addition to the impact of lower official prices, because supplier capacity for the products was constrained and the company was unable to secure sufficient quantities of remote-monitoring devices.」
Supplier capacity constraints prevented the company from securing sufficient remote-monitoring devices, and the decline in cardiac pacemaker sales volumes has continued. The supply constraint described in the previous quarter has continued. - FY2019-Q1WorsenedAnnual report
「In cardiac pacemakers, sales volumes of the pacemaker units declined from the previous fiscal year, in addition to the impact of lower reimbursement prices, because supplier capacity was constrained and the company was unable to secure sufficient quantities of remote-monitoring devices. Following the acquisition of Vascular Solutions by Teleflex Medical Europe, the company is negotiating contract terms with Teleflex Medical Europe and has agreed to conduct transactions temporarily under the same terms as the original contract with Vascular Solutions.」
Supplier capacity constraints prevented the company from securing sufficient remote-monitoring devices, and the supply risk materialized as a decline in pacemaker unit sales. Contract terms are also being negotiated following the supplier acquisition, and transactions are being conducted under temporary terms. - FY2018RestatedAnnual report
「Although the company seeks to stabilize procurement through long-term contracts and multiple sourcing, any disruption to the smooth supply of products or raw materials due to disasters or other factors, or the termination of a sales agreement with the company following an acquisition of a product supplier by a competitor, could affect the group's operating results and financial condition.」
The company reiterates the risks of dependence on specific suppliers, supply disruptions caused by disasters and other factors, and supplier acquisitions by competitors, as well as the countermeasures of long-term contracts and multiple sourcing. - FY2018-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third quarter of the current consolidated fiscal year. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The risk of dependence on specific suppliers and supply disruptions is treated as having undergone no material changes. - FY2018-Q1RestatedAnnual report
「No new business or other risks arose during the three-month period ended [the first quarter]. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The risk of dependence on specific suppliers and supply disruptions is treated as having undergone no material changes. - FY2017WorsenedAnnual report
「Although the company seeks to stabilize procurement through long-term contracts and multiple sourcing, any disruption to the smooth supply of products or raw materials due to disasters or other factors, or the termination of a sales agreement with the company following an acquisition of a product supplier by a competitor, could affect the group's operating results and financial condition.」
In addition to supply disruptions caused by disasters and other factors, the company added the possibility of a competitor acquiring a supplier and terminating the sales agreement as a risk. - FY2017-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third quarter of the current consolidated fiscal year. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The risk of dependence on specific suppliers and supply disruptions is treated as having undergone no material changes. - FY2017-Q2RestatedAnnual report
「No new business or other risks arose during the six-month period ended [the second quarter]. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The risk of dependence on specific suppliers and supply disruptions is treated as having undergone no material changes. - FY2017-Q1RestatedAnnual report
「No new business or other risks arose during the three-month period ended [the first quarter]. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The risk of dependence on specific suppliers and supply disruptions is treated as having undergone no material changes. - FY2016First statedAnnual report
「The group depends on certain suppliers for some of the products it sells and for raw materials used in its proprietary products. Although it seeks to stabilize procurement through long-term contracts and multiple sourcing, any disruption to the smooth supply of products or raw materials due to disasters or other factors could affect the group's operating results and financial condition.」
The company recognizes its dependence on specific suppliers and describes long-term contracts and multiple sourcing as countermeasures.