Respect for human rights

Digital Capital

Approach to Digital Capital

As a core strategy for achieving our Long-term Vision [DESIGN 2030], Sangetsu positions the “linkage and utilization of digital capital” as a key foundation for management and business operations. Our initiatives focus on strengthening this foundation, applying it to business activities, and transforming our business models. Sangetsu handles approximately 12,000 products, supported by a broad and complex value chain. However, the vast amount of product data and the information held by various players across the value chain are not always managed in a centralized manner. This creates a significant management challenge. By digitizing diverse information and accurately tracking inventory and product adoption status, we aim to improve transaction and logistics efficiency, expand services to users, and deliver higher added value.

Ideal Form

1. “Ensure reliable transactions”, 2. “Improve logistics efficiency”
3. “Provide added value through digital utilization”

Establishing a System to Strengthen Digital Capital

In FY2025, Sangetsu reorganized its structure to strengthen digital capital. We established the DX division. Also, in addition to the Information Systems Department and the Cybersecurity Management Office, we created a new SCM Planning Department responsible for optimizing supply chain management. Under the supervision of the officers in charge, these organizations coordinate to promote the enhancement of digital capital across the Company and its application to business operations. To address increasing security risks, the Cybersecurity Management Office convenes a Cybersecurity Committee every six months, with participation from the heads of each division. The Committee identifies information security issues and discusses countermeasures with the objective of protecting the information assets and networks of customers, business partners, and Sangetsu from cyberattacks, thereby ensuring the smooth continuation of business activities. Furthermore, to secure human resources capable of driving security initiatives, we are expanding the number of employees with security certifications through both mid-career hiring and internal development.

Changes in Information System Human Resources

Changes in Information System Human Resources

Initiatives to Enhance Supply Chain Management (SCM)

Enhancing SCM is crucial to maintaining appropriate inventory levels for approximately 12,000 products and to ensure a stable supply with no stock shortages. We have revised the traditional process management system, which handled each step individually after receiving orders, and are now developing a platform that manages the entire process in an integrated manner. This platform is based on demand forecasting, planning according to those forecasts, and linking order and procurement information. In building the platform, a team responsible for designing the logic and workflow works in close coordination with the operations team responsible for day-to-day execution. This cooperation is enabling the establishment of an effective management system. Through these initiatives, we aim to optimize inventory, improve the cash conversion cycle (CCC), reduce costs, and enhance delivery service levels.

Stock Optimization Initiatives (Centralization of data for each process)

Stock Optimization Initiatives (Centralization of data for each process)

Promotion of Employees’ Cross-Organizational Digital Projects

This initiative is led by employees to proactively promote the digitization of their work in a proactive manner. We are aiming to improve business efficiency and productivity by leveraging IT technologies such as RPA*¹ and AppSheet*². Approximately 12% of all employees participate in these projects and are contributing to the development of digital human resources as part of our efforts to strengthen human capital.

*1 RPA (Robotic Process Automation): Tool for automating manual tasks with robots
*2 AppSheet: Tool for developing apps for mobile devices and desktop PCs with no codes

Promotion of Company-wide Cross-organizational Digital Projects

Project

Purpose

Ratio of participation

Results at March 2024

RPA Project Aims to improve business efficiency by automating routine tasks by leveraging RPA. Participated by about 12% of employees No. of robots created: 245 Reducing working hours by about: 14,400 hours per year
AppSheet Utilization Project Aims to digitize operations and improve productivity by turning ideas for business improvement and information utilization into apps. No. of apps adopted: 272

Result Sharing Session