Information contained in the news release is current as of the date of announcement.
It is subject to change without prior notice.
Pioneer Establishes Procurement Center,
for Collective Purchases of Parts, Aimed at Cutting Costs
Tokyo, Japan, November 18, 1999 --- Pioneer Corporation announced that it will integrate the purchasing divisions of its internal companies and establish a Procurement Center within the Tokorozawa Plant facilities to initiate a centralized purchasing of parts.
Until now, each internal company --- HEC, MEC, BSC, and DPC* --- maintained its own purchasing divisions at the Tokorozawa, Kawagoe, and Ohmori Plants and procured parts independently.
The establishment of the Procurement Center --- that constitutes a Pioneer-wide bulk parts purchasing system --- will improve business operating efficiency by integrating the different systems and infrastructures at each internal company, concentrating the power of individual purchasing divisions at a single location, and will facilitate the sharing of information. At the same time, uniformity of parts beyond the framework of existing business divisions is being promoted, and parts purchases will take advantage of economies of scale.
Through these measures, Pioneer will reduce overall procurement costs and achieve reductions in product cost.
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