Kenwood 2000 Annual Report Download - page 6

A Message from the President
companies that excel in different fields can
produce a superior product in a shorter period.
Up to now, Kenwood has had partners in the
research and manufacturing of car audio and
other major product categories.
70% Share for Overseas Production
The R&D Department for home audio has
already been partially transferred to Malaysia,
following the transfer of major manufacturing
plants overseas. During the next term, the R&D
functions for car audio and cellular phones will
be partially transferred, as well. Overseas plants
are planned to account for 70% of total
production in this fiscal year.
An Internet based SCM (Supply Chain
Management) system is being introduced in
addition to the existing PEAK system, which is a
custom-made production management tool.
Maximizing Product Value with IT
Kenwood plans to introduce a series of high value-
added products, including products with network
capability, and shorten production lead-time in
order to further enhance the sales of popular
items and improve profitability. As for the
component business, it is the company's decision
that the supply of components be continued
because, as described earlier, certain devices are
also essential to our own future IT strategy.
In Pursuit of Appealing Products
Beyond merely packaging those advanced
technologies, ergonomic and unprecedented
design is the added feature of every Kenwood
product, even in basic product categories. Though
the company has long had a reputation for
superior product design, recent efforts are aimed
at creating variations that fit the different
personalities of users. One example is the color
variations in component audio systems and radio-
cassette players. And another is the outdoor radio
introduced in February 2000, which was designed
to appeal to rugged outdoor sportsmen by making
it operable under the severe conditions of
mountains, seashores, and winter weather.
Management for the 21st Century
If Kenwood is to thrive in the new century, it is
imperative to maintain a competitive edge.
Thus, the company is determined to supply
consumers with the products they want by
anticipating market trends, as well as
technological trends such as IT. Solidifying the
infrastructures for manufacturing - making
efficient production lines, rationalizing the
distribution network, improving production
methods, localizing R&D activities, etc. - will of
course also remain a major task of the company.
In the area of environmental preservation, the
company has already obtained ISO 14001
certifications on all its domestic sales offices,
including the head office, two factories in Japan,
and two overseas factories. We will carry our
efforts into the 21st century and take further
measures in conservation of energy, reduction of
waste and office paper, replacement of harmful
materials, and recycling of various resources.
Seeking Business Partners
In order to develop products incorporating IT,
which is a collective name for advanced
technologies in diverse fields, self-sufficiency is
nearly impossible. Instead, technical tie-ups with
KENWOOD Corporation Annual Report 2000
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Kaku Sakaida
President