Risk of excess inventory due to customers’ sudden production cuts or production discontinuations
First written in FY2020. 3 of 4 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2022: 14 of 40 companies on the "Worse" side.
16 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「The Group has established an ordering and inventory management system to obtain timely information from customers about production increases or cuts, production discontinuations, design changes and other developments, share that information with its manufacturing divisions and suppliers, and maintain appropriate inventory levels.」
The Group continues to maintain an inventory management system addressing both excess inventory resulting from sudden production cuts or production discontinuations and shortages resulting from delays in responding to requests for increased production. - FY2022RestatedAnnual report
「The Group has established an ordering and inventory management system to obtain timely information from customers about production increases or cuts, production discontinuations, design changes and other developments, share that information with its manufacturing divisions and suppliers, and maintain appropriate inventory levels.」
The Group continues to maintain an inventory management system addressing both excess inventory resulting from sudden production cuts or production discontinuations and shortages resulting from delays in responding to requests for increased production. - FY2021RestatedAnnual report
「The Group has established an ordering and inventory management system to obtain timely information from customers about production increases or cuts, production discontinuations, design changes and other developments, share that information with its manufacturing divisions and suppliers, and maintain appropriate inventory levels.」
The Group continues to maintain an inventory management system addressing both excess inventory resulting from sudden production cuts or production discontinuations and shortages resulting from delays in responding to requests for increased production. - FY2020First statedAnnual report
「There is a risk of holding excess inventory if the Group is unable to respond promptly to information concerning customers' sudden production cuts, production discontinuations and other developments.」
Both excess inventory caused by delays in responding to sudden production cuts and production discontinuations, and shortages caused by an inability to meet requests for increased production, were identified as risks.