Sankyo reports on "Growth 25" its internal reform plan - FASTENER EUROPE MAGAZINE
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Sankyo reports on "Growth 25" its internal reform plan

by Shun Otsuki
President & Editor in Chief KINSAN FASTENER NEWS  


Sankyo (Edogawa-ku, Tokyo; President Hiroaki Yamamoto) held a "Procurement Policy Briefing" and a "New Year Greeting Party" at Chinzan-so (Bunkyo-ku, Tokyo) on February 3. President Yamamoto reported on the measures of "Growth 25," an internal reform plan set forth in the mid-term plan.

According to the preliminary financial results for FY2022 (January-December), consolidated sales declined 5% YoY to 22.7 billion yen, of which domestic sales declined 5% YoY. Of this amount, domestic sales fell 5% YoY to 14.3 billion yen. As for overseas bases, sales in the Americas were up YoY due to new orders. The two bases in India and Mexico, which have production divisions, showed expectations for future growth, although sales in 2022 will be down from the previous year. For the group as a whole, the impact of production cutbacks in the automotive industry, particularly in China, was a negative factor.

The report also included an overview of internal reform efforts and measures related to "Growth 25," the fifth medium-term plan starting in 2021, which aims to "build a recession-proof structure" (President Yamamoto).

Among these measures, the company reported the consolidation of a plastic molding manufacturer into its group last December as a way to strengthen the manufacturing division. By strengthening not only the trading company function but also the manufacturing division, the company aims to expand sales for the entire group, including suppliers. President Yamamoto commented, "The automotive industry is becoming increasingly lightweight. We will focus on new materials and technologies to keep up.

Ryosuke Yamamoto, Vice President, reported that consolidated sales for FY2023 are expected to increase 4% YoY to 23.6 billion yen, of which domestic sales are expected to increase 2% YoY to 14.6 billion yen. Regarding these figures, he said, "There is a view that the supply of semiconductors will pick up in the second half of the year, but once the supply returns, there will be competition. We did not set a high target, but planned to keep sales at the same level as the previous year. In this context, he expressed his belief that it is necessary to establish a management structure that is not affected by external factors. He also set a numerical target of 26 billion yen in sales for the entire group by 2025, with a high profit margin, by promoting "Growth 25.

Growth 25" will focus human resources on customers and products. As part of this effort, the sales organization has been separated into two divisions, the Sales Department and the Administration Department, starting in 2022. The Sales Department has been reorganized into teams by parts business, instead of by area. Inventory control and order placement and receiving operations, which were previously handled by each sales office, will be transferred to the Administration Department. In the area of priority customers, which requires cooperation between domestic and overseas offices, the newly established Global Strategy Promotion Office will take the lead in promoting group-wide strategies, according to the explanation.