Adding "Price Revision" Function to "UPCYCLE" to Instantly Grasp Procurement Cost Impact of "Naphtha Crisis" from Strait of Hormuz Blockade and Prompt Management Decisions
A1A Corporation adds a Price Revision and Target Cost Management function to its manufacturing procurement platform UPCYCLE from June 2026, helping companies manage cost fluctuations caused by the Strait of Hormuz blockade.
📋 Article Processing Timeline
- 📰 Published: April 24, 2026 at 18:00
- 🔍 Collected: April 24, 2026 at 09:31
- 🤖 AI Analyzed: April 24, 2026 at 09:54 (22 min after Collected)
A1A Corporation (Headquarters: Chiyoda-ku, Tokyo; Representative Director: Shuhei Matsubara; hereinafter "A1A"), provider of the procurement data platform "UPCYCLE" for the manufacturing industry, announces that it will launch "Price Revision Function" and "Target Cost Management Function" on "UPCYCLE" from June 2026, in response to supply concerns regarding petroleum-based raw materials caused by the blockade of the Strait of Hormuz.
This function enables the entire organization to comprehensively execute and centrally manage the history of price revisions conducted regularly or during emergencies between manufacturers and suppliers. As a result, it becomes possible to accurately and promptly grasp the impact amount on procurement prices. This enhances the crisis detection capability to quickly understand and report the impact of price fluctuations during emergencies, and accelerates the consideration of policies requiring management decisions, such as revenue forecasting and passing on costs to sales prices.
Impact of the Strait of Hormuz Blockade on Raw Material Supply
Currently, the Japanese automotive manufacturing industry is in an extremely opaque environment with soaring energy and transportation costs due to the blockade of the Strait of Hormuz, and supply chain fragmentation caused by geopolitical risks.
In particular, amidst the supply crisis of raw materials represented by "naphtha" and the phase of price fluctuations, understanding the impact of procurement costs, which account for about 60% of sales, has become the most critical issue determining corporate survival. "Naphtha," obtained by distilling crude oil, is the main raw material for ethylene used in plastic and synthetic rubber products, and Japan relies heavily on the Middle East for its import.
Impact on the Manufacturing Industry and Initiatives for Procurement Departments
The impact on the manufacturing industry is mainly the following two points:
Impact 1: Risk of being unable to procure necessary parts and materials.
Impact 2: Soaring energy costs and procurement prices.
In the manufacturing industry, supply risk is the situation to be avoided most. Even if supply can be maintained despite soaring procurement prices, a chain of issues requiring management decisions occurs, such as passing costs onto sales prices, considering supply chain alternatives, revising financial forecasts, and dealing with stakeholders.
Under such circumstances, procurement departments are required to promptly undertake three initiatives:
Initiative 1: Grasping the degree of impact. Need to quickly visualize how much impact there is on the company's procured parts for management decisions during emergencies.
Initiative 2: Collecting and organizing evidence. To reflect soaring procurement prices in the selling price to customers, it is necessary to explain "what increased and by how much" with evidence.
Initiative 3: Cost reduction. Need to recover the soaring costs through the company's own efforts.
To advance the above "three initiatives," there are challenges such as opaque target parts and responsibility scopes for price revisions after mass production starts, uneven quality of price revisions due to invisible procurement price information at other bases, and difficulty in efficient practical execution due to personalized delivery base information and price determination history. In reality, a very heavy burden is placed because speed is required in emergencies.
Overview of the New Function "Bulk Price Revision / Target Cost Management"
This function realizes organized, efficient, and effective price revision activities after mass production. It will be possible to set target parts for price revision, target costs, and target periods, and manage the impact amount of price fluctuations, reasons for fluctuations, fluctuation history, and differences from target costs. It can be used not only during emergencies but also for regular price revision activities with suppliers during normal times.
1. Main Features
- Freely design targets for post-mass production part costs: Group parts by supplier or specific groups, set target costs, and aggregate/grasp price fluctuations.
- Systematically manage backgrounds and histories of price fluctuations: Reasons for price fluctuations, old/new prices, and differences are visualized.
- Information design unique to mass production manufacturers: Supports paid supply/managed self-supply, delivery base information, and linking raw material information with parts.
2. Benefits Provided
It becomes possible to systematically and comprehensively execute bulk price revisions from identifying affected parts due to material price fluctuations, creating new price proposals, to comparing old and new prices. The impact amount on future costs in preparation for procurement plans and emergencies can also be instantly estimated. By visualizing target differences and price revision practices, it can be utilized from persons in charge to management.
Screen Image
*The screen image shown is under development, and the design and functions may change upon release.
Future Outlook: As a "Transformation Partner" for the Manufacturing Industry
A1A will continue to promote the enhancement of decision-making support functions related to cost reduction using AI and expand supported items. We will also accelerate the development of a platform for procurement departments to transform into "proactive procurement," such as a risk presentation function utilizing public information like suppliers' medium-term management plans.
Overview of Procurement Data Platform "UPCYCLE"
https://up-cycle.jp/
"UPCYCLE" is
This function enables the entire organization to comprehensively execute and centrally manage the history of price revisions conducted regularly or during emergencies between manufacturers and suppliers. As a result, it becomes possible to accurately and promptly grasp the impact amount on procurement prices. This enhances the crisis detection capability to quickly understand and report the impact of price fluctuations during emergencies, and accelerates the consideration of policies requiring management decisions, such as revenue forecasting and passing on costs to sales prices.
Impact of the Strait of Hormuz Blockade on Raw Material Supply
Currently, the Japanese automotive manufacturing industry is in an extremely opaque environment with soaring energy and transportation costs due to the blockade of the Strait of Hormuz, and supply chain fragmentation caused by geopolitical risks.
In particular, amidst the supply crisis of raw materials represented by "naphtha" and the phase of price fluctuations, understanding the impact of procurement costs, which account for about 60% of sales, has become the most critical issue determining corporate survival. "Naphtha," obtained by distilling crude oil, is the main raw material for ethylene used in plastic and synthetic rubber products, and Japan relies heavily on the Middle East for its import.
Impact on the Manufacturing Industry and Initiatives for Procurement Departments
The impact on the manufacturing industry is mainly the following two points:
Impact 1: Risk of being unable to procure necessary parts and materials.
Impact 2: Soaring energy costs and procurement prices.
In the manufacturing industry, supply risk is the situation to be avoided most. Even if supply can be maintained despite soaring procurement prices, a chain of issues requiring management decisions occurs, such as passing costs onto sales prices, considering supply chain alternatives, revising financial forecasts, and dealing with stakeholders.
Under such circumstances, procurement departments are required to promptly undertake three initiatives:
Initiative 1: Grasping the degree of impact. Need to quickly visualize how much impact there is on the company's procured parts for management decisions during emergencies.
Initiative 2: Collecting and organizing evidence. To reflect soaring procurement prices in the selling price to customers, it is necessary to explain "what increased and by how much" with evidence.
Initiative 3: Cost reduction. Need to recover the soaring costs through the company's own efforts.
To advance the above "three initiatives," there are challenges such as opaque target parts and responsibility scopes for price revisions after mass production starts, uneven quality of price revisions due to invisible procurement price information at other bases, and difficulty in efficient practical execution due to personalized delivery base information and price determination history. In reality, a very heavy burden is placed because speed is required in emergencies.
Overview of the New Function "Bulk Price Revision / Target Cost Management"
This function realizes organized, efficient, and effective price revision activities after mass production. It will be possible to set target parts for price revision, target costs, and target periods, and manage the impact amount of price fluctuations, reasons for fluctuations, fluctuation history, and differences from target costs. It can be used not only during emergencies but also for regular price revision activities with suppliers during normal times.
1. Main Features
- Freely design targets for post-mass production part costs: Group parts by supplier or specific groups, set target costs, and aggregate/grasp price fluctuations.
- Systematically manage backgrounds and histories of price fluctuations: Reasons for price fluctuations, old/new prices, and differences are visualized.
- Information design unique to mass production manufacturers: Supports paid supply/managed self-supply, delivery base information, and linking raw material information with parts.
2. Benefits Provided
It becomes possible to systematically and comprehensively execute bulk price revisions from identifying affected parts due to material price fluctuations, creating new price proposals, to comparing old and new prices. The impact amount on future costs in preparation for procurement plans and emergencies can also be instantly estimated. By visualizing target differences and price revision practices, it can be utilized from persons in charge to management.
Screen Image
*The screen image shown is under development, and the design and functions may change upon release.
Future Outlook: As a "Transformation Partner" for the Manufacturing Industry
A1A will continue to promote the enhancement of decision-making support functions related to cost reduction using AI and expand supported items. We will also accelerate the development of a platform for procurement departments to transform into "proactive procurement," such as a risk presentation function utilizing public information like suppliers' medium-term management plans.
Overview of Procurement Data Platform "UPCYCLE"
https://up-cycle.jp/
"UPCYCLE" is