#Japan #Tokyo #Supply Chain #Cash Payments #Asahi Kogyo

Asahi Kogyo Co., Ltd. Implements Significant Payment Changes to Support Suppliers

Asahi Kogyo Co., Ltd., based in Minato City, Tokyo, has announced an important update concerning its payment terms for suppliers. Following its declaration to build stronger partnerships, Asahi Kogyo is taking definitive steps to enhance the collaboration within its supply chain. Starting from June 2026, all suppliers will receive payments exclusively in cash, signifying a major shift in the company's financial policies.

Key Changes in Payment Terms

As part of the changes publicized, Asahi Kogyo has modified two key aspects of its payment process: the method of payment and the payment deadlines.

1. Change in Payment Method

Previously, the company had different payment terms based on the capital of the suppliers. For instance:

• - Suppliers with capital under 40 million yen received 100% cash payments.
• - Suppliers with capital exceeding that amount were settled with a mix of cash, promissory notes, and electronic record claims.

As of June 2026, this practice will cease, applying a uniform payment structure for all suppliers, regardless of their capital size. All will now receive payments solely in cash, thereby promoting transparency and simplicity in the transaction process.

2. Adjusted Payment Deadlines

Along with the payment method, the deadlines for payments have also been revised. Previously:

• - For construction companies, payments were due on the fifth of the month following the month-end closing, provided that it wasn’t a holiday.
• - For equipment divisions, payments were made by the end of the following month.

Now, all suppliers can expect payments by the end of the following month after the month-end closing. If the payment date falls on a holiday, payments will be processed on the preceding business day, ensuring efficiency and reliability.

Objective of the Changes

This alteration in payment processes is not simply about maintaining financial flow; it represents Asahi Kogyo's dedication to enhancing value across its entire supply chain. By ensuring prompt cash payments, the company aims to fortify relationships with its business partners, fostering a cooperative environment conducive to mutual growth and success.

Commitment to Excellence

Founded in 1925, Asahi Kogyo Co., Ltd. prides itself on transforming spaces through advanced technologies in air, water, and heat management. Their mission encompasses design and construction solutions for various settings, including factories, research facilities, data centers, and more. By continuing to innovate in environmental control technologies, the company remains a leader in providing optimal conditions for productivity and comfort.

In conclusion, Asahi Kogyo's recent changes to its payment terms reflect a strategic move towards building a more resilient and equitable supply chain. By implementing 100% cash payments and adjusting payment deadlines, the company is not only enhancing operational efficiency but also strengthening its role as a supportive partner within the industry.