GS Yuasa Targets 1 Billion yen Cost Cut by Central Purchase

Japanese major battery maker, GS Yuasa Corporation announced on Monday the firm begins central purchase of lead battery materials at 14 transplants for fiscal 2011 started April. The firm aims to reduce cost by 500 million yen for fiscal 2011 and by 1 billion yen for fiscal 2012.

GS Yuasa has 41 production and sales sites in 19 countries. The firm has the world third largest share in automotive battery and has the world top share in motorcycle battery. The firm begins central purchase at 14 plants including 5 plants in China, 2 plants in Thailand, 2 plants in Indonesia and each plant in Taiwan, Vietnam, USA, UK and Australia.

GS Yuasa’s each transplant individually negotiates with suppliers about pricing for lead battery raw material including lead plate and terminal, plastic container and separator. However, the firm begins central purchase to reduce the cost. The firm’s procurement division purchases the materials for the plants. The firm expects the plants use common parts and materials and the materials logistics gets efficient through the central procurement management along with lower purchase cost.