Stable Product Supply

The supply of our products to customers may affect their production lines, so it is essential to build a system that enables us to handle unforeseeable circumstances in the supply chain. We therefore take daily measures to ensure a stable supply. In 2024, while transit time from Asia to the U.S. and Japan was stable, shipments to Europe were rerouted via the Cape of Good Hope to bypass the Suez Canal due to the deteriorating Middle East situation. This caused delays and longer transit times, leading to major fluctuations in inventories in Europe and disruptions in the first quarter. However, as in the previous fiscal year, we meticulously analyzed and managed customer demand, and planned inventories in response to the prolonged transit time, aiming to synchronize factory production and inventory levels in sales areas with the quantity demanded by customers.
As a result, our annual inventory turnover was 3.4 times in Japan, falling short of the target of 4. Meanwhile, the target was achieved in the U.S., with 6.3 times against 4.8, and in Europe, with 3.8 times against 3.6.
By ensuring moderately stable product supply, we are striving to achieve both greater customer satisfaction and bolster our financial structure.