Higher logistics costs due to lower prices and shorter lead times in recovering order shortfalls
First written in FY2018-Q3. 7 of 12 entries say "Worsened", first in FY2022-Q2. Latest entry: 2026-10-09.
No other company in this theme has enough history to compare yet.
- FY2026-H1WorsenedAnnual report
「Customers increasingly need rush orders aligned with actual consumer demand, including product planning and delivery on short lead times. We continue to strengthen our response capabilities across the entire business process, including flexible product proposals, short-cycle production and expedited logistics.」
Demand for rush orders with short lead times has increased further, making it necessary to strengthen response capabilities across the entire business process, including production and logistics. - FY2025WorsenedAnnual report
「In addition, due to the effects of the prolonged period of hot weather, customers increasingly need products to be supplied flexibly in response to weather conditions, and demand for short-lead-time fulfilment has grown.」
Demand for rush orders and fulfilment with short lead times has grown further, making production and logistics a greater operational challenge. - FY2025-H1WorsenedAnnual report
「In addition, as the prolonged heat wave has led customers to place more short-lead-time, demand-driven orders than ever before, we are making every effort to maintain a balance among QCD (quality, cost and delivery) by fully utilizing our networks for both production and logistics.」
The report states that rush orders with short lead times have increased more than before, making it a challenge to balance quality, cost and delivery times in production and logistics. - FY2024-Q3MitigatedAnnual report
「The company has worked to reflect a certain portion of the cost increases resulting from persistently high raw material prices and yen depreciation in selling prices, while thoroughly maintaining a sales stance aimed at securing appropriate profitability.」
To address earnings pressure from low-price competition and higher costs, the company is reflecting cost increases in prices and pursuing sales focused on appropriate profitability. - FY2024-Q1MitigatedAnnual report
「While curbing orders with low profitability driven by price competition, we are working to consistently pursue a sales approach that raises added value while securing appropriate profits.」
To address earnings pressure from requests for lower prices and shorter lead times, the company is curbing orders with low profitability and consistently pursuing a sales policy focused on added value and appropriate profits. - FY2023MitigatedAnnual report
「While working to secure an appropriate profit for each product code and reflect higher costs in selling prices」
The company is addressing the earnings pressure caused by higher costs and logistics expenses by reflecting cost increases in selling prices and securing an appropriate profit for each product code. - FY2022-Q2WorsenedAnnual report
「Primarily due to higher raw material costs, capacity constraints caused by having to shift production back to China as a result of lockdowns in ASEAN countries, and higher costs resulting from customers' demands for short lead times and low prices」
In addition to cost increases caused by customers requesting shorter lead times and lower prices, higher raw-material costs and production being shifted back resulted in capacity constraints, expanding the factors driving cost increases. - FY2018RestatedAnnual report
「However, in an effort to recover the order shortfall from the beginning of the period, we pursued sales at low prices and with short delivery times, which resulted in higher logistics costs and problems with quality and delivery schedules.」
The full-year report also states that pursuing lower prices and shorter lead times to recover the order shortfall resulted in higher logistics costs and quality and delivery-time issues. - FY2018-Q3MaterialisedAnnual report
「Although we worked to recover the order shortfall through the cumulative second quarter of the consolidated fiscal year, and revenue appeared to be bottoming out, we kept quoted prices low and set tight delivery schedules to recover the shortfall in orders. This resulted in higher logistics costs and a more difficult earnings situation than anticipated.」
The report states that quoted prices were lowered and delivery schedules tightened in the process of recovering the order shortfall, resulting in higher logistics costs and a more difficult earnings situation than anticipated.