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December 12th, 2025

Procurement improvement measures to reduce logistics costs in manufacturing industry: A typical indirect cost that squeezes profits in the manufacturing industry is “logistics costs.” For companies with overseas bases, including in Vietnam, international shipping fees and excess inventory can threaten business operations. This article explains how to systematically optimize logistics costs starting from procurement reform, using the latest data and specific examples. By the time you finish reading, you should have an actionable plan you can start on tomorrow. As of the end of July 2025, the Drewry World Container Index was $2,499 per 40ft container, a decrease of about 60% from the 2021 peak, but still 15% higher than pre-pandemic levels (2019) (drewry.co.uk). Meanwhile, domestic logistics costs in Vietnam account for 16-17% of GDP, significantly exceeding the world average of 10.6% (vietnamnet.vn). Although there is an advantage in labor costs, undeveloped transportation infrastructure and multi-stage transportation are the main causes of high costs. Logistics costs in the manufacturing industry are generally said to be composed of transportation costs (55%), storage costs (18%), cargo handling costs (15%), and administrative costs (12%) (internal benchmark values). Transportation and storage costs, in particular, are heavily influenced by procurement conditions (lot design and Incoterms). Large-volume orders lower the unit price. However, since inventory and warehouse costs increase, the overall cost does not necessarily decrease. Conversely, frequent small-lot orders increase the transportation unit price, which also leads to higher costs. The first thing to do is to grasp the current situation. By integrating purchasing and logistics data and setting KPIs such as PO issuance lead time, expenditure visualization rate, and inventory turnover rate, waste becomes apparent as numbers. There are reports of companies utilizing AI that have reduced logistics costs by an average of 15% and inventory by 35% (procurementtactics.com). By using man-hour automatic measurement tools like Qasee in conjunction with BI dashboards, you can move away from individual-dependent Excel management and speed up decision-making across the entire company. Optimizing order lots (recalculating MOQ <Minimum Order Quantity> / EOQ <Economic Order Quantity>) is the shortest path to simultaneously reducing transportation and inventory costs. For example, simply consolidating parts for the same destination into a weekly consolidated shipment can reduce the transportation unit price by an average of 12% compared to FCL <Full Container Load>. One of our clients switched long-tail items from monthly orders to weekly consolidated shipments, shortening inventory days from 45 to 25. As a secondary effect, supplier consolidation reduced the number of ...

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December 05th, 2025

Efficient screw inventory management techniques for small and large-species production: As global competition and the diversification of consumer needs accelerate, a shift to “High-Mix Low-Volume” (HMLV) production has become unavoidable for the manufacturing industry. To supply a wide variety of product variations in short cycles, even the slightest delay or inventory shortage can bring the entire production line to a halt. Screws, in particular, which determine the final quality of a product, become extremely difficult to manage as the combinations of size, material, surface treatment, and strength classification increase exponentially. The dilemma of holding excess inventory for fear of stockouts, which pressures storage space and cash flow, versus cutting back too much and inviting line stoppages or increased costs from emergency procurement, is a major challenge that plagues on-site managers. This article is written for managers in production control, purchasing, and quality control who face these issues. It explains practical know-how to achieve both “optimal inventory” and “cost optimization” simultaneously. We will cover the latest approaches in screw inventory management, from “visualization” using IoT and data analysis to demand forecasting, automated replenishment, and enhanced traceability. Drawing on the expertise of Ohta Vietnam, which has supported numerous implementations in the ASEAN region, including Vietnam, we will present concrete solutions. First, let’s organize the specific challenges of screw inventory in the HMLV era and then delve into the solutions. Due to a growing preference for customization and shorter market lifecycles, product lifecycles are shortening year by year. As a result, manufacturing sites have been forced to transition to a system of supplying “many product types” in “small quantities” with short lead times—in other words, High-Mix Low-Volume (HMLV). Fastening components like screws are directly linked to changes in finished product specifications, making them one of the parts most affected by the increase in variations. Parts procurement, which once simply involved bulk purchasing of general-purpose items, now requires sophisticated operations, from item number organization to replenishment timing. Diversification of Sizes: Part numbers are subdivided by head shape, length, and nominal screw diameter. It’s not uncommon for a single M3 screw to have dozens of variations in length and material. Combination of Materials and Surface Treatments: In addition to stainless steel and alloy steel, requirements for surface hardening and anti-rust coatings cause the number of stock-keeping units (SKUs) to increase exponentially. Differences Between Lots: In the automotive and medical device industries, lot tracking is mandatory, requiring separate storage and retrieval for each lot number, even ...

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November 28th, 2025

The impact of procurement speed on manufacturing industry – What is the key to shortening delivery times?: Procuring parts in the Asian region, including Vietnam, is attractive for its ability to build a flexible supply chain while mitigating the effects of currency exchange and geopolitical risks. However, no matter how much costs are reduced, if delivery times are delayed, market opportunities can be missed, and brand value can be damaged. This article explains the benefits of increasing procurement speed and concrete measures to achieve short delivery times. The keywords are “procurement speed” and “Vietnam procurement.” Procurement speed refers to the total lead time from placing an order until the parts arrive at the factory and are put into the production line. By analyzing it in three parts—order lead time, transportation lead time, and customs clearance/inspection lead time—bottleneck processes can be visualized. Improving procurement speed yields the following three effects: Shorter Delivery Times: Enables response to customer-required lead times with a comfortable margin. Inventory Compression: Reduces safety stock and improves cash flow. Flexible Response to Market Fluctuations: Allows for immediate response to demand shifts, preventing lost opportunities. The background for the focus on Vietnam procurement lies in its proximity to manufacturing bases and its cost competitiveness. By having the production and procurement countries be the same or adjacent, it is possible to shorten the typical 14-day sea transport to as little as 5 days by utilizing land or air transport. Furthermore, by selecting Incoterms DAP (Delivered at Place) / DDP (Delivered Duty Paid) and entrusting customs clearance to a local forwarder, an additional reduction of 1-2 days can be expected. “Visualization” is essential for improving procurement speed. By attaching RFID tags to screws and fastening parts and implementing a system that automatically scans them upon warehouse departure, inventory levels and locations are reflected in the cloud in real-time. At OHTA Vietnam, we link IoT sensor-equipped stockers with our production management system to realize automated ordering in response to demand fluctuations. As a result, we have shortened procurement lead times by an average of 18%. Quality trouble is the biggest factor in delivery delays. By completing primary inspections locally, you can prevent re-transportation and rework when defects occur. At the articulated robot automated inspection line provided by Ohta, we perform 100% automated inspection for thread defects and dimensional tolerances, issuing PPAP reports on the same day. The post-shipment claim rate is maintained at 0.01% or less. The number of days for safety stock is calculated as: (Max Demand × ...

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November 21st, 2025

Key points and success stories of screw procurement in the Vietnamese market: In recent years, industrial agglomeration in Vietnam has been rapidly advancing, particularly in the machinery, electronics, and automotive sectors. Japanese manufacturers are entering the local market one after another, accelerating the move to increase the local procurement ratio for parts. Among these parts, screws (fasteners such as bolts, nuts, and biscuits), while not accounting for a large percentage of production costs, are pivotal components whose quality defects can affect the reliability and safety of the entire product. This article organizes the merits, risks, and key points of procuring screws in Vietnam, and presents practical tips through success stories supported by OHTA Vietnam. In Vietnam’s screw-related industry, an increasing number of manufacturers are equipped with production lines that comply with international standards such as JIS, ISO, and ASTM, thanks to foreign-led capital investment. There are two main procurement channels: ① direct purchasing from local manufacturers, and ② via Japanese or local trading companies. The former offers high price competitiveness but can be cumbersome in negotiating MOQ (Minimum Order Quantity) and delivery times. The latter has lower risks in terms of language and quality assurance and can flexibly handle high-mix, low-volume orders, but a margin is added for that service. Looking at the cost structure, labor costs remain competitive at about one-third of China’s and about half of Thailand’s (as of 2025, from JETRO’s “Vietnam Wage Trends 2025 Edition”). Even with a strong yen and a weak dong, the potential for a 15-25% reduction in total costs, including transportation fees, is a significant advantage. Key Points for Quality Control: For torque value management, the combined use of calibrated torque wrenches and SPC (Statistical Process Control) is effective. The mainstream materials are SUS304/SUS316 (austenitic stainless steel), but cases of using carbon steel + trivalent chromate to comply with RoHS are increasing in recent years. Handling High-Mix, Low-Volume Orders: For special screws for medical equipment and industrial robots, selecting a CNC integrated factory that can handle lots of 500 pieces or less can shorten the lead time by an average of 40%. IoT Application Example: At OHTA Vietnam, we have introduced a QR code-based inventory management system that automatically uploads manufacturing lot information to the cloud. This has reduced the time required for tracking investigations by 70% compared to conventional methods. Logistics Optimization: Incoterms are based on CIP (Carriage and Insurance Paid To), securing three sea line shipments per week from Haiphong Port to ...

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November 14th, 2025

Logistics efficiency in manufacturing: Optimizing supply chain in screw procurement: To keep production lines running, it is essential to procure every component, even a screw weighing just a few grams, reliably and at the right time. However, on the actual factory floor, numerous challenges arise daily, including setting order lots for screw procurement, managing transport lead times, and securing inventory space. This article provides a practical approach to achieving lead time reduction, logistics efficiency, and cost reduction by taking a comprehensive look at the entire supply chain, starting with screw procurement. First, for our target audience—purchasing, production control, and management personnel in high-mix, low-volume manufacturing—we will re-examine the impact of screw procurement on the supply chain and clarify how its efficiency directly contributes to company-wide profits. Next, we will introduce strategic methods such as inventory optimization based on demand forecasting, and supplier consolidation/multi-sourcing, linking them with the latest trends in Asian manufacturing hubs, including Vietnam. Furthermore, we will explain specific measures step-by-step, such as real-time visualization through the implementation of WMS (Warehouse Management System) and TMS (Transport Management System), automation of screw standard management like ISO/JIS, and optimization of warehousing and transportation with an eye toward decarbonized logistics. By the end of this article, you will have a checklist and a roadmap that you can immediately apply to your company’s supply chain. This article explains the key points of supply chain optimization, starting from the perspective of screw procurement. Fastening components such as screws and bolts account for a low percentage of the total product cost, around 1-3%. However, they are “high-risk, low-cost” elements that can dramatically increase total costs if they trigger a line stoppage or quality defects. This is where the perspective of TCO (Total Cost of Ownership) becomes crucial. By quantifying not only the unit price but also storage fees from order lots, transportation costs, inspection and sorting labor, re-procurement costs for non-conforming parts, and even opportunity loss from line downtime, we can visualize the impact of screw procurement on overall logistics costs. TCO = Purchase Price + Transportation Cost + Inventory Holding Cost + Quality Risk Cost + Line Stoppage Loss For example, if you bulk-purchase a three-month supply of screws used at a rate of 5,000 pieces per month at a unit price of 5 yen, the order amount is 75,000 yen. However, when you add inventory holding costs (warehouse space efficiency, interest equivalent), stocktaking work, and labor costs, it is not uncommon for the ...

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November 07th, 2025

Differentiation between local and global procurement: Optimal manufacturing strategy: For the manufacturing industry to maintain and strengthen its international competitiveness, procurement strategy is the most critical factor, influencing 60-70% of product costs. The way a procurement network is constructed significantly impacts not only raw material costs but also lead times, inventory levels, cash flow, and even the carbon footprint. With global geopolitical risks and logistical disruptions becoming the norm, there is an accelerating movement to reassess procurement strategy not merely as a cost center, but as a strategic investment area for enhancing corporate value. This article is primarily intended for managers in charge of purchasing, supply chains, and overseeing local factories in Vietnam. As Vietnam’s industrial structure shifts from labor-intensive to technology-intensive, and while policies to foster supporting industries provide a tailwind, challenges such as quality assurance and variations in supplier capabilities remain. Within this context, the decision of “which parts to source locally and which to procure from overseas” is becoming increasingly complex. This article clearly defines two approaches: 1) “Local Sourcing,” which involves purchasing materials locally, and 2) “Global Sourcing,” which pursues optimal prices and technologies across borders. We will compare the merits and risks of both. Furthermore, we will present a framework for a hybrid utilization that considers product life cycles, exchange rate trends, and sustainability requirements, providing readers with perspectives to build an optimal procurement portfolio for their own companies. As supply chains are exposed to rapid changes in geopolitics, the environment, and markets, procurement managers are required to design strategies that achieve a balance between cost minimization, resilience, and sustainability. In Vietnam, in particular, moves to restructure procurement networks are prominent, driven by the need to break away from dependence on China and optimize within the ASEAN region. The Trend Towards Resilience: External shocks such as the COVID-19 pandemic, the Suez Canal obstruction, and US-China friction have highlighted the risks of depending on a single region. Major manufacturing companies, both Japanese and Western, are accelerating the dispersion of their bases to multiple locations, including Vietnam, as part of a “China Plus One” strategy. Redefining TCO (Total Cost of Ownership): An increasing number of companies are evaluating suppliers based on the Total Cost of Ownership, which includes not only the unit price of parts but also logistics costs, inventory holding costs, quality defect costs, and carbon pricing. For example, in response to the EU’s CBAM (Carbon Border Adjustment Mechanism) and corporate obligations to calculate Scope ...

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October 17th, 2025

How to Improve Product Quality Through Proper Screw Selection: Among the fastening components that influence the assembly accuracy and durability of a product, screws play a particularly important role. Selecting the right screws can prevent play and loosening between parts, significantly reducing the occurrence of defects and trouble. Furthermore, by adopting materials and surface treatments suited to the operating environment, the risk of corrosion and degradation can be lowered, making it possible to maintain quality over the long term. This article, under the theme of “Improving Quality with Screws,” will explain everything from selection points and how to determine the right materials and shapes to practical quality control methods, supporting the optimization of product quality. Choosing the right screws stabilizes torque management during fastening, suppressing gaps and wear between components. For example, hexagon socket head cap screws and Torx screws feature sockets that are less prone to slipping, making it easy to secure a consistent tightening force even in narrow spaces. Improved fastening accuracy prevents loosening even against mechanical vibrations and repeated loads, directly leading to long-term product reliability and quality improvement. If common carbon steel products are used without considering the environmental conditions where the screws will be installed, rust and corrosion can progress rapidly, leading to a degradation of the entire product’s performance. By selecting stainless steel for outdoor or high-humidity environments, and screws with nickel plating or PVD coating for areas around equipment where chemicals are present, the risk of corrosion can be significantly reduced. Combining the right materials and surface treatments for the right application is the key to quality improvement. It is important to comprehensively evaluate not only the initial cost of screws but also the maintenance frequency and the labor required for replacement work. By introducing screws with high wear and corrosion resistance, the replacement cycle can be extended, which in the long run can suppress total costs. Additionally, by adopting standardized high-performance screws in addition to general-purpose parts to streamline inventory management, opportunity losses due to ordering mistakes or delivery delays can also be prevented. As a result, product quality improvement and operational cost optimization can be achieved simultaneously. Hexagon socket head cap screws have a structure that allows them to be securely tightened from the inside with a socket wrench or a hex key, making them particularly suitable for work in tight spaces. Since their bearing surface is flat, they have a wide contact area with the nut and excellent load ...

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October 09th, 2025

The benefits and implementation process of screw standardization for manufacturing industry: In the manufacturing industry, the complexity of component management, ordering, and inventory control for a wide variety of screw parts has become a major issue. Screw standardization is a method of streamlining material procurement, improving production line efficiency, and stabilizing quality by adopting common standards such as JIS and ISO to narrow down the parts used. This provides a wide range of practical benefits, including reducing parts inventory, cutting down on ordering mistakes, and lowering the risk of fastening defects. This article provides a detailed explanation of the basic concepts and practical processes of “screw standardization” for technical staff, production control, quality assurance, and procurement personnel in manufacturing. By presenting key points for implementation, step-by-step procedures, and case studies of cost optimization using procurement in Vietnam, we aim to support your company’s productivity improvement and cost reduction. By narrowing down the parts used through screw standardization, it becomes possible to optimize order lots. This not only reduces purchasing costs but also significantly cuts down on warehouse space and management man-hours by decreasing the variety of inventory. It mitigates the risk of excess inventory, which is common in high-mix, low-volume production, and leads to improved cash flow. By standardizing torque control and tolerances based on common standards (JIS/ISO), the fastening strength of screws can be consistently maintained at a certain level. Establishing work procedure manuals with unified torque values helps prevent fastening defects and rework, reducing the burden on the quality assurance department. Standardized parts can be arranged immediately by suppliers, significantly shortening procurement lead times. Furthermore, sharing common standard specifications among suppliers reduces communication costs in ordering operations and cuts down on man-hours for order mistakes and specification confirmation tasks. Metric screws are the most commonly used standard in the manufacturing industry, with JIS B 0209 (Japanese Industrial Standards) and ISO 68-1 (International Organization for Standardization) being representative. There are two types: coarse thread (larger pitch) and fine thread (smaller pitch). Coarse thread screws are highly versatile, while fine thread screws are suitable for preventing vibration and loosening. Key checkpoints when selecting standards: Outer Diameter and Pitch Suitability: Consider strength and loosening prevention effects according to the usage environment. Material & Surface Treatment: Requirements for corrosion resistance (stainless steel/plating, etc.) and load-bearing capacity. Compatibility Check: Affinity with existing tools and on-site processes. Cost Comparison: Balance between unit price for bulk procurement and storage costs for small-lot procurement. To stabilize fastening ...

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October 03rd, 2025

Why Ohta’s Screw Procurement Service Excels in High-Mix, Low-Volume Production｜Achieving Cost Reduction and Shorter Lead Times in Vietnam: In recent years, against the backdrop of diversifying customer needs, “high-mix low-volume production” has become mainstream in manufacturing sites. However, this method of handling a wide variety of products in small quantities while switching production lines presents unique challenges in terms of parts procurement. Increased Procurement Costs Since a wide variety of products are ordered in small quantities, the unit price tends to be high. In addition, procuring from multiple suppliers leads to an accumulation of ordering procedures and transportation costs, which increases overall costs. Delivery Risk Due to Inventory Shortages and Surpluses Frequent product changeovers increase the risk of “out of stock,” where necessary parts are not available when needed. On the other hand, increasing safety stock to avoid stockouts leads to an increase in storage costs and a deterioration of cash flow. Complicated Quality Control As the number of product types handled increases, standard management and inspection processes for each product become more complex. This also increases the risk of human error and quality variations. In response to these challenges, Ohta Vietnam offers a supply chain solution optimized for high-mix low-volume production as a “specialist in local procurement of fastening parts.” Abundant Inventory and Product Coverage We always have over 5,000 types of inventory in Vietnam. Including our head office in Japan, we boast an overwhelming lineup of 50,000 types of inventory and a total of 300,000 types handled. Logistics Network Strong in Small Lots We operate two regular air flights per week and three to four sea flights per month from Japan. This allows us to suppress transportation costs and shorten lead times even for small lot orders. Thorough Quality Assurance System We have a quality control department that has obtained ISO9001 certification. We promise stable quality with inspection processes that comply with JIS and ISO standards and Japanese-style management know-how. Ohta Vietnam’s service streamlines ordering operations at manufacturing sites, reduces inventory risk, and realizes stable procurement of high-quality screws. In the next chapter, we will explain its strengths in more detail. Centered on our manufacturing and logistics bases in Ho Chi Minh City and Dong Nai Province, we centrally manage everything from procurement to shipping within Vietnam. By not going through Japan, we reduce conventional time loss. Our “vertically integrated system,” in which the production control department directly coordinates, enables delivery within a minimum of 3 business days after parts procurement. We have introduced an ...

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September 26th, 2025

Supply Chain Optimization in Manufacturing and the Role of Screws: In the manufacturing industry, supply chain optimization is a critical initiative that serves as the cornerstone for reducing production costs and adhering to delivery deadlines. In the modern era of advancing globalization and high-mix, low-volume production, it is necessary to maintain and improve competitiveness by seamlessly integrating everything from parts procurement and inventory management to the manufacturing process. In particular, fastening components like screws, while seemingly small parts, are “key parts” that directly impact product quality and process stability. If proper standard selection or torque management is not performed, it can lead to serious risks such as loosening or breakage causing process shutdowns, and even product recalls. This article, assuming an audience of procurement and production management personnel, equipment managers, and quality assurance staff in the manufacturing industry, will concretely explain the basic framework of supply chain optimization and the role and management points of screws (fastening components). First, please understand the positioning of screws in the supply chain and use this knowledge to optimize your company’s manufacturing processes. Supply chain optimization in manufacturing involves integrally managing the entire process from raw material procurement to product completion to achieve cost reduction, inventory optimization, and lead time shortening. Especially as the small-lot, high-mix production of parts progresses, it is essential to reduce the risks of cash flow deterioration due to excess inventory and delivery delays due to stockouts. On the other hand, by setting appropriate inventory targets and accurately managing order timing, it supports the stable operation of the manufacturing site and also leads to the elimination of bottlenecks. Furthermore, fastening components (screws), located at the end of the supply chain, are key parts directly linked to product quality assurance and the risk of process shutdowns. If the standard selection or torque management of screws is inappropriate, it can lead to recalls or rework due to loosening or breakage, potentially undermining the reliability of the entire supply chain. To prevent this, it is necessary to introduce a sophisticated system of planning, execution, and evaluation for screw management as well. Supply Chain Management (SCM) consists of a cycle of “Plan > Procure > Produce > Deliver > Evaluate.” In the planning stage, demand forecasts and inventory targets are set, and in the execution stage, actual orders and deliveries are made. The monitoring function grasps KPIs (stockout rate, inventory turnover rate, on-time delivery rate, etc.) in real-time and issues alerts in case of ...