Ricoh 2013 Annual Report Download - page 51

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Ricoh Group Sustainability Report 2013 50
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 efficient. Our goal is to have a supply chain
nimble enough to increase production flexibility 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 five 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.
Overview Action Data & Profile
SCM
Cost and energy savings through
production process innovation
Our aim is to continually reduce production costs
while mitigating the environmental impact generated
by our supply chain operations. We are making
our production lines smaller, boosting the energy
efficiency of production equipment, and switching
to natural energy sources such as natural gas. We
are developing alternative materials, using renewable
resources, reusing components, recycling and cutting
waste. And we are reducing our consumption of
virgin resources and augmenting our environmental
contribution by sharing the know-how gained from
these efforts with society at large.
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.
Global supply chain innovation
Ricoh has gained significant knowledge through
SCM upgrades in Japan and our other major
business regions, and we now share that experience
throughout the Group to further improve our global
processes.
•฀SCM concept
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.
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