Japan-based chipmaker Toshiba intends to reduce its procurement costs by 1 trillion yen ($11.7bn) over the next three years by seeking new suppliers in emerging economies.
The company, which aims to spend 70% of its procurement budget overseas in the year starting April 2012, plans to slash costs especially in flat TVs and other electronic products businesses, Reuters quoted a company spokesman.
Toshiba also plans to station buyers in Russia and Eastern Europe, with buyers already in place in India and Vietnam, while it will speed its search for new suppliers by hiring local experts.
Cooperation on cost-cutting with the foreign sub-contractors that design and manufacture its electronics are also included in the plans of the company.
According to Reuters, efforts have been stepped up by Japanese companies, such as Hitachi and Sony to reduce their procurement costs.
