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Overview Action Data & Prole
SCM
ISO 26000: • Organizational governance • Human rights • Labor practices • The environment • Fair operating practices • Consumer issues • Community development
Ricoh Group Sustainability Report 2014 58
Optimization of global inventory
Our supply chain is handling an ever-growing number
of products as Ricoh expands into new territories
andemergingmarkets.Evenasourbusinessgrows,
however, we are limiting the size of our inventory
to make procurement and management systems
more efcient. Our goal is to have a supply chain
nimbleenoughtoincreaseproductionexibilitywhile
meeting customer requirements precisely.
Optimizing procurement and minimizing
purchasing costs
In response to the growth of Asian markets, we are
steppingupourproductioncapacityintheASEAN
region—centered in our Thailand plant—to realize
our plan to create strategic products there. Together
with this manufacturing shift, we are working to
lower purchasing costs and reorganize our parts
production network throughout Asia.
Lowering logistics costs
The Ricoh Group is simultaneously lowering logistics
costs and environmental impact by reducing waste
in ve areas: packaging, transportation, space
utilization, transshipment and storage. Our global
initiatives include improving the space utilization of
containers and optimizing transportation routes and
logistics base locations.
Cost and energy savings through production
process innovation
We are tackling production process innovation
from the perspective of lower production costs and
reduced environmental impact. With the capacity
torespondexiblytoproductionvolumeand
model changes, we are moving ahead with the
implementation of production systems with low
environmental impact and switching to energy-
saving manufacturing equipment and using
renewable energy and natural gas.
In addition, by providing the know-how and
systems acquired through production process
innovation, we will contribute to reduced
environmental impact of society itself.
Expanding SCM to growth regions
To expand our business, we are bolstering
our procurement and production systems and
reorganizing and optimizing our logistics network
amongthehigh-growthBRICS(Brazil,Russia,India,
ChinaandSouthAfrica)andASEANnations.
Product Planning Development Designing Engineering IT System
Sales &
Service Logistics Collection &
Recycling
ProductionProcurement
Group-wide SCM structural reform
The Ricoh Group works continuously to upgrade its manufacturing process at every stage, from
procurement through production, sales & service to logistics and collection & recycling. Our supply
chain system integrates product planning, development, design, technology and information
systemsto encompass all our business functions, and it coordinates all major regions and
departments to enable Group-wide improvements.
We aim to maintain just the right amount of inventory across the
Group, regardless of any increase in the number of products, and
are reducing the average age of inventory.
• Inventory and average age of inventory
(JPY billion)
(Number of months)
Average age of inventory
Inventory
195.0
195.3
194.7
2.03 2.03
1.74
（FY）2012 2013 2014
Adds Conguration Point to Logistics Grid, Cuts Transportation Costs and Shortens Lead Times
EstablishesRicohEuropeanProductionCentre
The Ricoh European Production Centre (REPC) was set up in January 2014 at the European Distribution Centre, our
Netherlands-based logistics hub for Europe. The new production center is an MB&R-type facility.
To date, Ricoh Industrie France S.A.S. and Ricoh UK Products Ltd.—conguration centers in consuming
regions—took basic modules produced at intensive production sites in Thailand and China and turned out nished
products matched to customer specications. From there, the products were shipped to the European Distribution
Centre for delivery to customers in Europe. By connecting sales and production divisions, coupled with our new
operation at the REPC, we have centralized the function of conguration centers in consuming regions on the
logistics grid while trimming transportation costs and shrinking lead times. P.60