KADOKAWA ANNUAL REPORT 2006

The support business domain meeting is participated in by 2 business companies; Building Book Center and Kadokawa Book Service as well as the Sales Dept. and Production Control Dept. of Kadokawa Shoten, Service room of Ascii Corporation, Publishing Control Dept. of Enterbrain, Production Dept. of Kadokawa SS Communications and Publishing Dept. of Media Works. The entire group works on improving the efficiency of overall support business including order receiving/shipping/inventory control, sales plan preparation/agency sales/sales promotion of book stores and production control/material procurement. Integration of physical distribution and integration of system inside the group, enhancement of negotiating ability towards clients and suppliers through taking action as a total group and realization of advantageous development at the stores through sales promotion of book stores as a total group are the concrete issues we should solve. While publishing business companies of the group are constructing “Only One” system through splitting up into separate companies, the Business Support Domain aims to be “No.1” in this field through utilizing common infrastructure in the business fields namely “Sales, physical distribution, procurement” and by applying the scale merit of the group as a whole.
The Building Book Center that takes charge of the physical distribution business of the group carries out order receiving, shipping and inventory control operation for Ascii and Enterbrain, which are the new member of the group, and at the same time the Building Book Center aggregates all direct sales operation of the group to them and reviews construction of new warehouses and allocation of products in all warehouses taking into account physical distribution operation of visual related products.
Kadokawa Book Service that supports sales business enhances exchange of effective information for accepting sales promotion operation from each company of the group, accumulates knowledge of products and know-how for sales and realizes group sales promotion with a sense of unity using the “Kadokawa Group Holdings brand”. The company will also focus on expansion/settlement of bookstore distribution routes for DVDs and cultivation of original distribution routes for visual content.