Production and Logistics Disruptions at Partner Factories Under a Fabless Structure
First written in FY2023. 1 of 3 entries say "Reframed", first in FY2024. Latest entry: FY2026.
0 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Reputational and business impacts arising from the discovery of labor-condition issues and human rights violations, including within the supply chain」
The response to risks associated with partner factories under the fabless business model expanded from managing factory operations and production processes to supply-chain management covering human rights and labor conditions, traceability and environmental considerations. - FY2024ReframedAnnual report
「As the Group operates a fabless business model, production of all products is outsourced to partner factories in Japan and overseas. Accordingly, if unforeseen procurement problems arise due to political or economic disruption in production regions, problems involving human rights issues at partner factories, deteriorating operating conditions at partner factories, production-control issues, logistics disruptions or other factors, sales opportunities may be lost as a result of production stoppages, delivery delays or other causes. As countermeasures, the Group will thoroughly and regularly verify partner factories’ compliance, including compliance with human rights requirements. It will also carefully discuss the operating status, production capacity and production processes of partner factories when placing orders, monitor progress at each stage of the production process, and issue instructions to reorganize production lines as necessary, thereby seeking to minimize the risk of problems occurring.」
Regarding risks associated with partner factories under the fabless business model, political and economic disruption in production regions and human rights issues were identified in addition to the previously identified risks of deteriorating operating conditions, production-control issues and logistics disruptions. The response measures were also detailed, including compliance checks at partner factories, monitoring of operating status, production capacity and processes, and reorganizing production lines. - FY2023First statedAnnual report
「As the Group operates a fabless business model, production of all products is outsourced to partner factories in Japan and overseas. Accordingly, if unforeseen procurement problems arise due to deteriorating conditions at partner factories, production-control issues, logistics disruptions or other factors, sales opportunities may be lost as a result of delivery delays or other causes.」
Against the backdrop of the fabless business model and complete outsourcing of production to partner factories in Japan and overseas, deterioration in factory operating conditions, production-control issues, logistics disruptions and sales opportunities lost due to delivery delays were identified as new key risks.