Risk of Supply Disruptions and Higher Procurement Costs for Components
First written in FY2017. 4 of 13 entries say "Materialised", first in FY2023-Q1. Latest entry: FY2026-H1.
Shimadzu moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2018: 12 of 31 companies on the "Worse" side.
23 other companies' latest entry also says "Materialised".
- FY2026-H1MaterialisedAnnual report
「In Japan, demand in the defense sector increased due to the government's policy of strengthening defense capabilities, but sales temporarily declined as issues arose in part of the supply chain.」
Supply-chain constraints are reported to have materialized as a temporary decline in sales of equipment installed on aircraft. - FY2024MaterialisedAnnual report
「Under these circumstances, our group was also affected by slower growth in its China business and persistently high raw material prices, among other factors, but」
Regarding procurement and price inflation risks, it was stated that persistently high raw material prices had an actual impact on the business environment and results for the fiscal year. - FY2024-Q2MitigatedAnnual report
「Against this backdrop, sales of the priority products liquid chromatographs, mass spectrometry systems and gas chromatographs increased in the healthcare and green fields, while production also recovered as shortages of parts and materials eased.」
Regarding supply constraints caused by shortages of parts and materials, the disclosure now describes mitigation of the impact and a recovery in production, indicating an improvement from the effects of production delays and soaring prices through the previous year. - FY2024-Q1MitigatedAnnual report
「Revenue increased, supported by a recovery in production as the impact of parts and materials shortages eased, as well as a rebound from the impact of lockdowns caused by the spread of COVID-19 in China in the previous year.」
Regarding supply constraints caused by shortages of parts and materials, the disclosure now describes mitigation of the impact and a recovery in production, indicating an improvement from the effects of production delays and soaring prices through the previous year. - FY2023ReframedAnnual report
「Production and installation of products were delayed due to shortages of parts and materials, including semiconductors, and the impact of the spread of COVID-19 in China, but signs of resolution have emerged since 2023.」
While shortages of materials and supply constraints materialized as production and installation delays, signs of resolution were also reported in 2023, updating the risk situation. - FY2023-Q3RestatedAnnual report
「Under these operating conditions, our group's revenue was affected by production delays caused by shortages of parts and materials and by delays in product installation resulting from the spread of the novel coronavirus in China. Operating profit was also affected by increased investment in personnel and development, which had been restrained during the pandemic, lower revenue resulting from the spread of the novel coronavirus in China, and soaring parts and materials prices.」
Production delays and higher prices caused by shortages of parts and materials continue to be cited as having an actual impact on revenue and operating profit. - FY2023-Q2MaterialisedAnnual report
「The Group’s revenue was significantly affected by production delays caused by the lockdown in China and shortages of parts and materials. Operating profit also remained under pressure, as investments in human resources and development, which had been restrained during the COVID-19 pandemic, were promoted, while revenue declined due to the lockdown in China and the prices of parts and materials rose sharply.」
The risk of shortages and supply constraints continues to be reflected in actual results through production delays caused by China’s lockdowns and the impact on operating profit of soaring component and material prices. - FY2023-Q1MaterialisedAnnual report
「Although the business was affected by lockdowns in China, production delays caused by supply constraints from shortages of parts and materials, and other factors, revenue increased owing to solid performance by liquid chromatographs and turbomolecular pumps in Europe and other parts of Asia, as well as foreign exchange effects. Operating profit declined, however, owing mainly to surging prices for parts and materials.」
The previously identified procurement risks of component shortages and price inflation have appeared in actual performance as production delays and lower operating profit. - FY2022WorsenedAnnual report
「Although the new normal of living with COVID-19 has taken hold in countries around the world and the reopening of socioeconomic activity is progressing as the impact of the novel coronavirus continues, the business environment remains difficult to foresee, due to supply chain disruptions, particularly in semiconductors, and the outbreak of Russia’s invasion of Ukraine, among other factors.」
In addition to shortages of materials and supply chain disruptions, Russia's invasion of Ukraine was explicitly identified as a source of uncertainty in the business environment. - FY2022-Q3WorsenedAnnual report
「The situation remains uncertain, amid concerns over the impact on corporate production activity of supply chain disruptions caused by shortages of semiconductors and other components.」
For procurement risks for which measures such as securing inventory and alternative sources of supply had already been described, shortages of semiconductors and other materials and supply chain disruptions were explicitly identified as external environmental concerns. - FY2021MitigatedAnnual report
「We are also securing a certain level of inventory for important raw materials and other items, selecting alternative procurement sources, and acquiring in-house production capacity to avoid dependence on specific suppliers.」
Specific measures to mitigate procurement risks are identified, including securing inventory, establishing alternative suppliers and acquiring in-house production capacity. - FY2020ReframedAnnual report
「However, natural disasters, epidemics, accidents, and the bankruptcy of suppliers may cause shortages of raw materials and other items or restrict supply volumes, affecting the Group's production activities. If the supply of raw materials and other items deteriorates over an extended period or procurement prices rise sharply, the Group's operating results and financial condition may be affected by lost opportunities, reduced price competitiveness of its products, deterioration in profit margins, and other factors.」
The risks of stalled component supplies and higher procurement prices have been organized as procurement risks, including supply restrictions caused by natural disasters, epidemics, accidents and the bankruptcy of suppliers. - FY2017First statedAnnual report
「If supplies of certain components are disrupted and alternative sources cannot be secured, or procurement prices rise sharply, the resulting lost opportunities and deterioration in product margins could affect the Group’s operating results and financial position.」
First description of the risk of component supply disruptions, difficulty securing alternative sources, and higher procurement prices leading to lost opportunities and weaker margins.