How Konica Minolta and FUJIFILM Became Procurement Partners
Konica Minolta and FUJIFILM Business Innovation have formed the Global Procurement Partners Corp. Established on 31 January 2025, the company will have the following core functions:
- Development of procurement strategies and deployment to the procurement function divisions at each production site
- Procurement lead function, including negotiation with suppliers and procurement management
- Procurement services to ensure quality, cost, delivery and environmental compliance of externally purchased goods
The Path to Partnership
The duo have been exploring a partnership since April 2024, as a memorandum of understanding was signed to begin a feasibility study for a strategic alliance in the multifunction printer (MFP), office printer and production printer segments.
As the duo have seen the quickening evolution of the market landscape of MFPs and as the printers need proactive measures, Konica Minolta and FUJIFILM Business Innovation were actively considering a business alliance to strengthen their business foundation, including the development of a robust supply system for their products. The companies are also seeking to expand other business alliances and continue discussions.
The discussions between the two mentioned plans such as:
Procurement Business Alliance:
- Exploring the establishment of a joint venture to coordinate the procurement of raw materials and parts
- Tentative timetable for establishment of a joint venture: Second quarter of FY2024
- Shareholding Ratio: Majority ownership by FUJIFILM Business Innovation Corp
Toner Development and Production Business Alliance
Other Business Alliances:
- Discussion and agreement on other strategic collaborations related to the subject business will be addressed separately
Speaking back in 2024, Toshimitsu Taiko, President and CEO of Konica Minolta, said: "Sharing a common understanding of the challenges facing the business, the two leading companies will be able to mutually maximise strengths through this alliance.
"I am looking forward to working together to improve investment efficiency and cost-competitiveness, strengthen capabilities for stable supply, environmental initiatives and business continuity plans (BCP) and pursue the potential for enhancing business resilience as global manufacturers."
Naoki Hama, President and CEO, FUJIFILM Business Innovation Corp. added: "The ongoing discussions for this business alliance are of immense importance as we strive to strengthen our competitiveness and expand our global presence to make a significant leap forward.
"We are confident that this partnership will create a new framework to enhance our supply chain and build a robust business foundation."
Leverage their extensive supplier networks
The partnership was formally agreed on 8 July, with plans to establish a joint venture to coordinate the procurement of raw materials and parts.
Through the newly established joint venture, FUJIFILM Business Innovation and Konica Minolta will leverage their extensive supplier networks to strengthen their business foundations by establishing a robust supply system for their products and streamlining their business processes.
The establishment of the joint venture was on 31 January 2025, as all review and approval procedures under the competition laws overseas were completed. In addition, the name of the joint venture company has been decided to be Global Procurement Partners Corp.
The company is made up of around 192 employees.
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