What's New

Sanden Holdings Corporation (Representative Director & President: Katsuya Nishi; head office: Isesaki-shi, Gunma, Japan) is steadily implementing the five reform plans that are the key strategies of its mid-term management plan SCOPE2023.

As a measure to accomplish one of the reform plans, "Cash Flow Generation through Asset Reform," we launched the Global SCM Project on July 21, 2019 and are now fully engaged in the global inventory optimization activities. As a result of these efforts, the actual consolidated inventory as of the end of September 2020 was 29.4 billion yen, reduction by 5.9 billion yen from 35.3 billion yen as of the end of March 2020.

We have carried out the following actions through this project.

1. Development of the action policy for each domestic business company and overseas subsidiary, breakdown of tasks to achieve the inventory targets into detailed practices, and management and support for the activities at each site.

2. Reduction in excess inventory through standardized inventory control for products and parts, improvement in turnover of slow moving inventory and occurrence prevention, and expediting of supply and demand adjustment by simplifying the PSI (production, sales, and inventory) planning process.

In addition to the existing measures, as one of the mid-term priorities, we will work on the global development of the "just-in-time production management system based on the inventory planning theory" which has been worked out and developed for the domestic business, in order to further strengthen our inventory management structure.

Furthermore, we will work to reduce inventory by utilizing the PLM system, which began operating in Japan in August 2020. For example, we will strengthen the production discontinuance management for parts procurement by visualizing the production discontinuance schedule through the PLM system for information sharing among departments. Also, we will share the parts inventory information on a global basis to efficiently increase the inventory turnover.

We will continue to make steady progress with our mid-term management plan SCOPE2023.