Procurement Professional is the official publication of CIPS Australasia

Toshiba to cut procurement costs by $12b in 3 years

16 Aug 2010

Source: Reuters

Toshiba Corp, Japan’s biggest chipmaker, said it plans to cut its procurement costs by 1 trillion yen ($11.7 billion) over the next three years by seeking new suppliers in emerging economies.

Toshiba aims to spend 70 percent of its procurement budget overseas in the year starting April 2012, up from 57 percent in the 2009/10 financial year, a company spokesman said, in a move that is also aimed at curbing the impact of currency fluctuations.

Japanese companies have been stepping up efforts to reduce their procurement costs. Electronics conglomerate Hitachi Ltd plans to double its overseas procurement ratio to 50 percent in three years to lessen its reliance on costly Japan while Sony Corp has slashed the number of its suppliers by more than half.

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