Risk of supply disruptions due to concentrated production in China
First written in FY2017. 4 of 9 entries say "Mitigated", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2022: 27 of 57 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Risk diversification through the diversification and distribution of production countries and suppliers (i.e., sources of products, such as manufacturers and trading companies; approximately 600 companies)」
The diversification and distribution of production countries and approximately 600 suppliers remain in place as responses to the risk associated with the concentration of production in China and elsewhere. - FY2025MitigatedAnnual report
「Risk diversification through the diversification and distribution of production countries and suppliers (i.e., sources of products, such as manufacturers and trading companies; approximately 600 companies)」
Responses to the risk associated with the concentration of production in China and elsewhere were developed into the diversification and distribution of production countries and approximately 600 suppliers, early reservation of materials, and changes to alternative materials. - FY2023MitigatedAnnual report
「Our group is working to establish a supply chain capable of responding flexibly to changes in the international situation by diversifying production sites across multiple countries and regions. We have also prepared a BCP (business continuity plan) to address risks arising from disasters and emergencies.」
Diversification of production sites across multiple regions and a BCP were specified as measures to address the risk of supply disruption associated with the concentration of production in China. - FY2023-Q2MaterialisedAnnual report
「In inventory management, some products experienced delivery delays due to the lockdown in Shanghai, and we addressed the issue in coordination with suppliers,」
In relation to the risk of supply disruption associated with the concentration of production in China, some products actually experienced delivery delays due to the lockdown in Shanghai. The response through coordination with suppliers was also described. - FY2021MitigatedAnnual report
「In response to these risks, our group is working to establish a supply chain capable of responding flexibly to changes in the international situation by diversifying production sites across multiple countries and regions.」
A policy of diversifying production sites across multiple countries and regions was newly specified as a response to the risk associated with the concentration of production in China. - FY2020WorsenedAnnual report
「In addition, amid the spread of COVID-19 infections in China, as well as the impact on the consumption environment, the timing of containment remains unforeseeable, as in Japan.」
While the risk associated with the concentration of production in China had been documented previously, it was stated that the timing of containing the spread of COVID-19 in China and its impact on the consumption environment remained unforeseeable. - FY2019RestatedAnnual report
「Our group’s products have a high import ratio, with sourcing particularly concentrated in the People’s Republic of China. If production becomes difficult in that country for any reason, our group’s business performance could be affected unless production can be smoothly shifted to other regions.」
The concentration of production in China and the potential impact on business performance if production cannot be shifted to other regions were reiterated in the same terms. - FY2018RestatedAnnual report
「Our group’s products have a high import ratio, with sourcing particularly concentrated in the People’s Republic of China. If production becomes difficult in that country for any reason, our group’s business performance could be affected unless production can be smoothly shifted to other regions.」
The concentration of production in China and the risk of supply disruption if production cannot be shifted to other regions were reiterated in the same terms. - FY2017First statedAnnual report
「Our group’s products have a high import ratio, with sourcing particularly concentrated in the People’s Republic of China. If production becomes difficult in that country for any reason, our group’s business performance could be affected unless production can be smoothly shifted to other regions.」
The high import ratio and concentration of production in China were identified as business risks, together with the difficulty of shifting supply to other regions.