Dependence on Suppliers, Partner Factories and Payment Processing Companies
First written in FY2016. 3 of 11 entries say "Materialised", first in FY2019-Q1. Latest entry: FY2024.
Mrk Holdings moved to the "Worse" side of this theme in 2017, 6 years before the typical company in this theme (2023).
The whole theme swung hardest in 2024: 10 of 32 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- FY2024MaterialisedAnnual report
「While orders for new products were strong, the 2024 Noto Peninsula Earthquake struck, damaging one of the sewing factories for the new products. Production delays resulted in a temporary stockout, leading to higher sales but lower profit. With the cooperation of partner factories and other parties concerned, the stockout was resolved in late March, and a production system was established that enabled stable delivery of products to customers.」
The 2024 Noto Peninsula Earthquake damaged a sewing factory for the new products, causing production delays and a temporary stockout. The company explains that the stockout was subsequently resolved in late March and that stable supply was restored. - FY2023RestatedAnnual report
「For each product, the Group uses multiple partner factories. In particular, for business partners responsible for manufacturing core products using advanced, specialised skills, the Group is working to reduce the impact on product supply by strengthening its cooperative relationships, sharing information closely and monitoring their financial condition.」
The Group continues to address supply dependence risks by using multiple factories, sharing information with business partners and monitoring their financial condition. - FY2021RestatedAnnual report
「For each product, the Group uses multiple partner factories. In particular, for business partners responsible for manufacturing core products using advanced, specialised skills, the Group is working to reduce the impact on product supply by strengthening its cooperative relationships, sharing information closely and monitoring their financial condition.」
In response to the supply risk arising from the limited number of factories capable of handling advanced technologies, the Group continues to use multiple factories, share information and monitor the financial condition of business partners. - FY2020MitigatedAnnual report
「For each product, the Group uses multiple partner factories. In particular, for business partners responsible for manufacturing core products using advanced, specialised skills, the Group is working to reduce the impact on product supply by strengthening its cooperative relationships, sharing information closely and monitoring their financial condition.」
The Group has specified its response to supply dependence risks by using multiple factories for the same product, strengthening cooperation and information sharing with key business partners, and monitoring their financial condition. - FY2020-Q1MitigatedAnnual report
「During the first quarter, the supply system for the core Curvaceous series stabilized, while the bridal body-makeup lingerie series mon marier was renewed for the first time in 11 years. The product lineup was steadily expanded.」
Regarding the Curvaceous production constraints that occurred in the previous fiscal year, the company states that the supply system for its core products has stabilised, indicating progress in addressing supply risks. - FY2019RestatedAnnual report
「The Group's core products, women's shapewear, require advanced, specialised skills in areas including the lace used and the manufacturing process, and the number of factories capable of handling them is limited.」
The company continues to disclose the limited number of factories capable of handling advanced technologies and the risks of reduced supply and purchasing capacity arising from dependence on contract manufacturers, consumer finance companies and credit-card companies. - FY2019-Q3MitigatedAnnual report
「In October 2018, a stable supply system for the core Curvaceous product series was established. As a result, sales increased, partly because discounted products accounted for a smaller share of sales, and the gross profit margin also improved.」
The company states that a stable supply system was established in October 2018 in response to the Curvaceous production delays that occurred during the first half. Although the previous supply constraints continued to affect cumulative results, measures to address the risk had progressed. - FY2019-Q2MaterialisedAnnual report
「Although orders for the core Curvaceous shapewear product series were strong, expansion of the production lines lagged behind. As a result, while sales were secured as described above, the gross profit margin declined substantially, and the company was unable to recover its upfront investment costs, including promotional expenses.」
Expansion of the production lines could not keep pace with strong orders for Curvaceous, and delivery and production constraints led to a substantial decline in the gross profit margin and prevented recovery of the upfront investment. - FY2019-Q1MaterialisedAnnual report
「Although reservations for the core Curvaceous shapewear product were strong, expansion of the production lines could not keep pace, and delivery to many customers was delayed until the second quarter or later.」
A supply constraint actually occurred: expansion of the production lines could not keep pace with reservations for the core product, delaying deliveries to customers until the second quarter or later. - FY2017WorsenedAnnual report
「The merchandise handled by the Group requires advanced, specialised skills in areas including the lace used and the manufacturing process, and the number of factories capable of handling it is limited.」
In addition to the previous dependence on ITOCHU Corporation and partner factories, the company explicitly identifies the supply constraint arising from the limited number of factories capable of handling advanced technologies, making the dependence risk more specific. - FY2016First statedAnnual report
「The Group purchases most of its merchandise through ITOCHU Corporation, while outsourcing its manufacture to partner factories. If an unforeseen disaster or accident at any of these factories causes supply delays and the Group is unable to promptly find another contract manufacturer, or if a factory becomes insolvent, this could affect the Group's business activities and operating performance.」
The company identifies risks of reduced supply and purchasing capacity relating to procurement through ITOCHU Corporation, outsourced manufacturing by partner factories, and alliances with consumer finance and credit-card companies.