Mitsubishi Heavy to consolidate parts procurement

Mitsubishi Heavy Industries Ltd. plans to purchase off-the-shelf components such as steel plates, screws and lubricants from its headquarters in Japan, a move seen cutting costs by ¥10-20 billion (US$121.26-242.52 million) a year. The company plans to overhaul its computer system for purchasing next fiscal year. The new system will be on stream in fiscal 2012. The move to consolidate procurement is expected to cover roughly ¥300 billion (US$3.6 billion) of the almost ¥900 billion (US$10.9 billion) in parts and materials purchased annually on a parent-only basis. Mitsubishi Heavy has long been known to give each of its factories a high degree of autonomy. Its 13 domestic plants each procure materials on their own, with the exception of such items as stationery and uniforms. (January 12, 2011)