Respect for human rights

Digital Capital

Approach to Digital Capital

Our Long-term Vision [DESIGN 2030] announced in May 2020 set forth our corporate vision as “Space Creation Company,” and one of the ways of strengthening management and business foundations is to “Use DATA to Increase the Efficiency of Business and Transform Business.” Our Medium-term Business Plan [BX 2025] announced in May 2023 also changed our expression to “Linkage and Utilization of Digital Capital,” and efforts are being made to not only strengthen the foundation, but also to utilize it for business activities and transforming the business model.
Our Group handles some 12,000 products, and value chain underpinning this effort is extremely long. In contrast, the vast amounts of product data and information possessed by each player throughout the value chain were not always managed in a centralized manner, and this resulted in one of our major management challenges. Digitizing such diverse information and gaining and accurately insight into inventory management and product adoption information will help make business and logistics more efficient and expand services to users, with the aim of providing even higher added value.

Ideal Form

1. Ensuring transactions and 2. Streamlining logistics by incorporating data that integrates the supply chain
3. Providing added value by digitally supporting product selection for consumers

Establishment of a System to Strengthen Digital Capital

To build up our digital capital, we established the DX Promotion Section in 2020 for facilitating the digitization of our operations and use in our business activities. We recently established a task force on supply chain management (SCM) under the direct supervision of the President, and recruited human resources with expertise in the areas of digital capital and SCM strategy as a mid-career director in charge, to embark on studies and initiatives on digital capital across all departments.
Meanwhile, we established the Cybersecurity Management Office in August 2022 with the aim of maintaining and continuing normal and smooth business activities by appropriately protecting from the threat of various cyber attacks the information assets and network systems of our customers, business partners, and our own companies that we handle in the course of business. Since the second half of FY2022, we have held a Cybersecurity Committee meeting attended by the President & CEO, the Executive Officer in charge of cybersecurity, and responsible persons from each department. We are securing expert personnel with mid-career hiring and advancing development of internal human resources who are promoting these initiatives.

Changes in Information System Human Resources

Changes in Information System Human Resources

Initiatives to Enhance Supply Chain Management(SCM)

Enhancing SCM is crucial for maintaining a standing stock of approximately 12,000 products and to ensure a stable supply with no stock shortages. We are moving ahead with revising our reviewing our existing data management system that handled each process after orders were received, to a system that links order information and stock replenishment information and manages them in an integrated manner. With this management system, eliminating the time lag in information will improve the cash conversion cycle (CCC) by optimizing stock, as well as reduce costs and improve 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 project is being conducted by employees to promote 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. Around 10% of employees are participating in the project. One of the aims of this activity is to cultivate digital human resources, and we are expanding initiatives as part of efforts to enhance our 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 10% of employees No. of robots created: 205 Reducing working hours by about: 11,000 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: 157